All Forum Posts by: A.j. Martinez

It's on market, but I don't think anybody has thought about making the property "commercial"...The back yard is huge and has plenty of potential to be a 12-15 car, parking lot...

When I got started on this site, I only had intentions of buying a small, residential, "fixer-upper"... One that I could afford to pay for in cash, one that I could easily lease monthly for a small cash flow, and one that I couldn't "mess up" too badly, since I am new at this. The plan was to study as much as I could, BEFORE I bought it, and to also learn along the way...

When I found this particular place, and I realized that it could easlily be re-zoned into commercial property, it kind of changed my outlook on things... I hadn't planned on buying a commercial property, but the more I look into it, the more promising it seems as an investment. There is new construction popping up all around this property, in every direction. The building is only a few blocks away from both the IH-10 and IH-35 freeways, as well as being near the corner of two major streets, allowing for easy access, in and out of the area. The businesses that surround this property, all seem to have brisk sales, and seem to be doing very well. And as I stated previously, the place is literally surrounded by other commercial property, begging the question as to why nobody else had attempted to make this change before.

I agree, that most folks wouldn't want to live in the middle of all those businesses, so I am hesitant to buy this place, UNLESS I am certain that I will change the zoning into commercial. Although the layout of the old house isn't "ideal" for all businesses, I could easily see the place being a successful office space of some type (lawyer, insurance, loan, etc.), or maybe a small clinic, or even a hair or nail salon...

Thank you gentlemen, I have already been in contact with the city zoning people, and they seem to think that the re-zoning process would be fairly simple. They have also confirmed that I would qualify for city development grants that would allow me to change the zoning, at no charge to myself... What excites me the most, is that there are no commercial properties in the area, that sell for less than 100k... I can buy this place AND renovate it for less than half of that number! My understanding is that with commercial property you don't use comparables, to figure out the value, like you would with residential. It's all about the cash flow, and what you can rent it for, that matters...

For the record, I am a newbee. I have been lurking about on these boards for the last couple of months, and I've been reading everything I can, relating to real estate investment. I need some advice, and I was hoping that some of the "more experienced" among you could help. I have the option to purchase a 1,200 Sqft residential property in the NW corner of downtown San Antonio, TX. Even though the building in question, was built in the year 1900, it is not considered a historic home, and it will need about 20K in renovation, including foundation work for the pier and beam below. I can buy the place now, for 10K below the appraised property tax value, and once it's fixed up, it should be worth considerably more. All of this is already appealing enough as a potential "first deal", especially since I have enough money saved up to buy the place outright, and to renovate it as well! What makes it even more intriguing, is that this property is surrounded by commercial buildings! The property is right next to the corner of two major, commercial streets.There is a restaurant to the right of this place, and a bakery to the left, and even a convenience store directly in front of it, on the other side of the street. So, my question is this... Would I be better off leaving the place as a residence, or should I try to get it re-zoned as a "commercial" property? I can easily see it being used as an office of some kind or even a small retail outlet. I'm not sure which way to go, but I feel fairly confident that if I were to make the effort to make the property into a commercial building, that it would end up being worth even more... Thoughts? Suggestions?