I have the opportunity to buy a "commercial" property for peanuts. Is this a good move?
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?