Housing/flipping in Lakewood/East Dallas (Austin, Plano: foreclosures, rental, countertops)

[moxie23]

Hi,

My family is considering a move to Dallas from Austin in the next year or so so that we can be closer to family. In Austin, we live in a nice, older neighborhood - lots of mature trees, larger lots, houses with character, pedestrian friendly, walking distance to locally-owned shops, restaurants, etc. As we search for neighborhoods in Dallas, we keep coming across Lakewood/East Dallas as the neighborhood that would best suit us -all that we currently enjoy about our neighborhood in Austin plus proximity to White Rock Lake. (Does our assessment sound right to you?)

I have read though that housing prices have risen considerably in this area in recent years, and as I search the MLS, I'm noticing that lots of these homes built in the 1920s and 1930s have granite countertops, completely renovated kitchens and baths, etc. My concern is that these houses are being flipped and therefore aren't being built/redone very well. We don't want to spend $300k+ only to find problem and problem down the road with these renovations. Does anyone have any insight into whether flipping is rampant in this part of Dallas? Any thoughts on how to deal with this as we search for housing?

Thanks!
Melinda

[socketz]

It's a double edge sword. Flipping drives prices up quickly, but there are some unknowns buying a flip as you mentioned.

I believe almost all the flips in Dallas are right around the uptown area.

BUT.....many times a flip finishes out out pretty nice.

At least you don't have to scrape wallpaper, pull up 20 year old carpet and track down mold and foundation issues. I was looking here in Plano for a while and those 4 seemed to be common place for homes that were not even as old as Dallas proper.

The climate is very harsh here at times and it takes a toll on a home over time.

[hamiltonpl]

There is a fair amount of flipping in East Dallas/Lakewood. I don't know of any flipping in Uptown. Most of that is new construction. Some of the flipped houses are done very tastefully -- some aren't. You'll still be able to find a 1920's house untouched very easily.

By the way, I live in Lakewood and work in Uptown.

[Lakewooder]

I recently read something about an experienced flipper saying it's gotten too expensive to do flips in Lakewood and now he's concentrating on the 50s and 60s home just north of Mockingbird (but in Lakewood or Stonewall Jackson elementary zones).

If you are going to flip, I would suggest my neighborhood, Junius Heights Historic District. You can still find something under 200K there if you look for a bit and I saw a recently redone home go on the market for $339K - this is a frame Craftsman Bungalow. We have some Tudors and other eclectic brick homes just off Gaston but those usually go for more untouched.

I would say the quality of the work done on most of the flips in East Dallas is good, because most of them were done by long-time residents who love the neighborhood and want to make the renovations compatible.

Otherwise they could have just sold for more to a builder for a McMansion.

So, I would suggest looking in Conservation and Historic Districts...

[moxie23]

Oh, I'm not interested in flipping a house. I think y'all may have misunderstood my question. I'm nervous about ending up buying a flipped house.

I know many homeowners have done upgrades to these quaint, older homes, and I'm not thinking of those as flipped. I'm talking about people who bought, remodeled, and sold quickly. I'm concerned about whether that has occurred much in Lakewood and how we can avoid buying a house like that. I'm sure some flippers do a good job; I'm also sure that some do the bare minimum so that an unsuspecting home buyer ends up footing the bill for repairs for years to come!

Thanks!

[momof2dfw]

Don't worry, there are not that many "flipped" homes in Lakewood or in the Dallas area. If you find one you'll know right away. What your more likely to find if the house was not "owner occupied" is that it was a rental and now the owner wants to sell it so they have gone in and fixed it up to sell. The prices of homes around Dallas are too high for even homes that need work for people to buy and flip. Sellers tend to think their outdated 80's redo is still current w/ the times. In the sought after areas these houses will sell to people that are looking to buy and stay and willing to spend some $$$ to bring it up to date and enjoy for themselves for many years. Even foreclosures are not at prices to buy for investors to buy and flip if they need a lot of work.

[Keikis]

The best thing to do is make sure that you have an excellent home inspector and indicate that you believe that the house is a flip. A good inspector can tell you whether improvements are thorough or just cosmetic.

[sonshinelife]

I agree with Keikis. Find a reputable realitor and inspector. I can't imagine with good strong advice you could go wrong. Most of the people I know that live in the area you are looking at seem to be single or parents of very young children planning on moving when their children hit school age. I don't know all of their specifics as to why they don't want to remain other than it is school related.

My only concern and I don't mean to start a debate, are the schools. I'd want to research the school situation elementary - highschool before buying the home. To me schools and knowing the home is a quality built or flipped home go hand in hand.

The homes are beautiful in that area... I won't argue this point. I'd just want to check everything out carefully before investing. Which it sounds like you are doing. Good luck.

[socketz]

I would listen to Lakewooder's advice, he and that group that came over from the Dallas Metrpolis forums all appear to be experienced investors in the area.

They'd be able to tell you what to look for as far as flip quality goes.