San Antonio land near downtown

San Antonio land near downtown

Austin, TX · Member since 2016 · 2 posts · 1 vote
Hi everybody! I've purchased a small lot in a single family zoned neighborhood in Southtown San Antonio right next to the highway interchange offramp and a high school sports field to develop it as a rental or sale lot. It's approximately 40x90 feet without setbacks and the buildable lot would be around 20x40 plus onsite parking and two stories. An accessory dwelling is possible although very compact. The site is not zoned for residential as it is a unplatted parcel. It's also at the end of a short dead end street. Ive been entertaining various options because the utilities are nonexistent and the waste lines in particular would cost about $6000 for an extension. I'm looking for advice on how to maximize the profit margin with low overhead development costs as a starting point. It's an interesting concept because the city needs more development to improve this older-generation neighborhood that is partially run down and quite close to Southtown amenities like the blue star arts district and new mission reach trails. It's my hometown so I have some personal interest in adding value as well as helping someone have a great place to live. What is the market willing to reasonably offer to maximizing the potential of this type of site? What would I stand to gain and would it be worth it? Additionally, what are the odds that an investor would be interested in becoming part of this process and at what stage of its development? I am an architect and capable of putting together a full concept and set of plans as necessary. Would it be overly speculative to be developing houses in San Antonio and for what type of investor should I be aiming for?
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  • Wholesaler, Rehabber and Landlord · San Antonio, TX · Member since 2014 · 2k+ posts · 2k+ votes
    9y

    I think all of those questions that you have should have been part of your "due dilligence" before you bought the property. The answers to these questions determine how much you should pay for the property or if you should even buy it.

    If the lot is not platted, has no water, no sewer, within 1 mile from downtown you have to ask, will the city even let you build on the site??

    • find several builders who can tell you what it will cost to build in the area
    • ask a realtor what you can expect to get as a sale price
    • you also want to know how long or days on market (DOM) properties are taking to sell
    • find out by what is the desireable size and floorplan for the area.

    Good Luck!!

  • Realtor · Schertz, TX · Member since 2015 · 226 posts · 53 votes
    9y

    @Rick Pozos @Matt James

    I'm an engineer and i do a lot of work in land development for private clients and i can tell you that you will most likely need to get the lot platted before you can build anything.  The city uses platting as a way to force you to do everything they require.  They basically will not approve the plat or any associated building permits until all requirements are fulfilled.  Before the plat is approved/recorded they will require you to extend the utilities to serve the site and improve the street to UDC standards (depending on the condition of the road now).  Sounds like you are clear of the Edward's Aquifer areas, that helps.

    I'm confused because you said is is zoned residential then you say it isn't zoned.  The parcel should still be zoned even though it isn't platted, so you need to check the City's website for what it is zoned.  If your proposed development is not allowed within the existing zoning (check the UDC), you will need to apply for a rezoning.  I have gone through this and it isn't pretty sometimes.  If you propose a zoning that the neighbors don't like, believe me they will appear and publicly speak out against it.  You basically need to state your case before the zoning commission and let the cards fall where they may.

    Regarding utilities, there are really 3 costs associated: 

    1. Design - usually a set of engineering plans is required to be submitted to the municipality (SAWS for water/sewer) before they can be built
    2. Construction - cost for a contractor to build the utilities per the plans, and
    3. Impact fees - you will need to pay these to offset the 'impact' your site has on the water and sewer system.  Depending on your proposed site, they can be expensive...in the $10's of thousands in some cases.

    That's the tricky thing about land development...to take a raw piece of land and build on it usually involves triggering extensive development requirements by various agencies.  i agree with Rick, this should have been considered before you bought.  Platting, zoning, engineering, construction, etc can run into the $10's of thousands also and can really take a financial toll if you didn't account for them.  But again, it all depends on what you plan to do.

    Let me know if i can answer any more development questions.  You can also schedule a development meeting with the City planners (free) and talk about your plans with them.

    Miles

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