So I would like to know from people that actually live in Wroclaw if this area is really that bad?
It's developing rapidly. It's still not the 'best' area, but I would expect the apartments there to hold their value. A lot of younger people are moving in there (the same process is seen with Praga in Warsaw and Jeżyce in Poznań), and it should always be easy enough to rent the property if it's attractive.
Are you looking at buying new or old? The research you should do in this case differs. There are some severe problems in Wrocław in some older buildings (particularly around Nowy Targ) in relation to the building administration being effectively bankrupt, for instance.