Not sure how this house is zoned

[Timothy Paul R.]

So there is this little house 968 sq ft for sale in the Texas town I live in. It’s listed for 143k, it is in bad shape. Windows boarded up, floors and walls messed up, etc. Houses in this neighborhood are selling for 160-180k. But this particular house is at the edge of the neighborhood and surrounded by commercial properties. I don’t know how the house is zoned other than just straight up residential but it makes me think there could be big potential with its location. Especially with area growing very rapidly. It’s appears to have been on the market a long time with the price being reduced every few months. I’m new to investing in Real Estate, I’m in the process of saving up for my first down payment on what will be a house hack for sure. Does anyone with more experience have any thoughts on this? I just feel like it could have really big potential. Thanks!

[Aaron K.]

It doesn't sound like a good deal as a residence, and buying it for commercial potential is a naked speculation play, which can be dangerous.  You can ask the city how it is zoned but even if it were commercial it has the disadvantage that it has to be demolished before anything can replace it.