Zonability.com

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Discovery Idea:

Make money

Investors employ different real estate strategies. One that is often used is to buy existing homes on land zoned for commercial. It is relatively easy and often the listing agent has no idea until the deal closes.

The investor may opt to retain the home but market it for a commercial use - and hire a leasing agent to attract a business.

The investor may opt to tear down the home and market the lot for commercial development.

Other ways to make money by knowing city zoning include:

1. Having this information available at the time of the appraisal. While it seems obvious the appraiser would know, it makes you look organized and saves you from having to get another appraisal if this major property attribute is not revealed.

2. Run a few calculations looking at the city zoning relative to what's there now to get a sense of what could be there. This is useful information to have when marketing the property or refinancing. It could even mean a savings if the loan-to-value ratio changes as a result of a higher appraisal.

3. Look at subdividing as an option whether that is dividing up the land into lots or using a condominium regime to allow for a legal unit to sell or rent. Both platting and condominum rules are included in their own ordinances rather than in the zoning.

Platting: While platting is its own process and dictates if subdividing the land will render "x" or "y" number of lots, those lots will need to meet the minimum lot size standards as required by city zoning.

Condominium regime: The State of Texas sets the rules for creating a condominium regime. This process creates legal units that may be sold. It is important to follow the requirements to gain this ability.