Zoned residential. Utilities on site. Surrounded by homes… and still not buildable.
I came across a lot recently that, on the surface, looked like an easy win.
- Zoned residential
- 50’ x 154’
- Utilities available
- Established neighborhood
- Previously had a house on it
Most investors (myself included, early on) would look at this and assume it’s a straightforward build.
But during the permitting process, the issue showed up:
The property is in the regulatory floodplain.
That completely changed the path forward.
In San Antonio, if you're planning to build a habitable structure in the floodplain, you can’t just pull permits and start construction.
You’re required to plat the property first.
That turns a simple infill deal into a much heavier lift:
- Hiring a civil engineer
- Going through the platting process
- Drainage review
- Elevation requirements (BFE compliance)
- Added timeline and holding costs
And all of that happens before construction even begins.
What this really means
This wasn’t a zoning issue. Zoning allowed residential use.
The problem was a site constraint that doesn’t show up unless you’re digging deeper.
Floodplain doesn’t always kill a deal—but it will:
- Increase cost
- Extend timelines
- Add complexity and risk
If you don’t account for that upfront, your margins can disappear pretty quickly.
My takeaway
A lot of investors stop at:
A better question is:
Curious how others handle this
For those doing infill or small development:
- How do you screen for floodplain risk upfront?
- Do you automatically pass on floodplain lots, or price them differently?
- Any experiences where a floodplain deal still made sense?
Always interested to hear how others are underwriting these.
