<DOCUMENT>
<TYPE>3
<SEQUENCE>1
<FILENAME>acqiot_28march2003.txt
<TEXT>
U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM 3

INITIAL STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934,
Section 17(a) of the Public Utility Holding Company Act of 1935 or
Section 30(f) of the Investment Company Act of 1940


[_]  Check this box if no longer subject to Section 16. Form 4 or Form 5
     obligations may continue. SEE Instruction 1(b).

________________________________________________________________________________
1.   Name and Address of Reporting Person*

Income Opportunity Acquisition Corporation (1)
--------------------------------------------------------------------------------
   (Last)                           (First)             (Middle)

1800 Valley View Lane, Suite 300
--------------------------------------------------------------------------------
                                    (Street)

Dallas                                TX                  75234
--------------------------------------------------------------------------------
   (City)                           (State)              (Zip)


________________________________________________________________________________
2.   Date of Event Requiring Statement (Month/Day/Year)

March 18, 2003
________________________________________________________________________________
3.   I.R.S Identification Number of Reporting Person, if an entity (Voluntary)

13-4243609
________________________________________________________________________________
4.   Issuer Name and Ticker or Trading Symbol

Income Opportunity Realty Investors, Inc. ("IOT")
________________________________________________________________________________
5.   Relationship of Reporting Person to Issuer
     (Check all applicable)

     [_]  Director                             [X]  10% Owner
     [_]  Officer (give title below)           [_]  Other (specify below)


________________________________________________________________________________
6.  If Amendment, Date of Original (Month/Year)

________________________________________________________________________________
7.   Individual or Joint/Group Reporting (Check applicable line)

     [X]  Form filed by One Reporting Person
     [_]  Form filed by More than One Reporting Person
________________________________________________________________________________


================================================================================
             Table I -- Non-Derivative Securities Beneficially Owned
================================================================================
<TABLE>
<CAPTION>
                                                                 3. Ownership Form:
                                      2. Amount of Securities       Direct (D) or
1. Title of Security                     Beneficially Owned         Indirect (I)       4. Nature of Indirect Beneficial Ownership
   (Instr. 4)                            (Instr. 4)                 (Instr. 5)            (Instr. 5)
------------------------------------------------------------------------------------------------------------------------------------
<S>                                         <C>                       <C>                          <C>

Common Stock                              265,036 (2)                    D


------------------------------------------------------------------------------------------------------------------------------------


====================================================================================================================================
</TABLE>



FORM 3 (continued)

              Table II -- Derivative Securities Beneficially Owned
         (e.g., puts, calls, warrants, options, convertible securities)

================================================================================
<TABLE>
<CAPTION>
                                                                                                        5. Owner-
                                                    3. Title and Amount of Securities                      ship
                                                       Underlying Derivative Security                      Form of
                         2. Date Exercisable           (Instr. 4)                                          Derivative
                            and Expiration Date     ---------------------------------    4. Conver-        Security:
                            (Month/Day/Year)                               Amount           sion or        Direct      6. Nature of
                         ----------------------                            or               Exercise       (D) or         Indirect
                         Date       Expira-                                Number           Price of       Indirect       Beneficial
1. Title of Derivative   Exer-      tion                                   of               Derivative     (I)            Ownership
   Security (Instr. 4)   cisable    Date            Title                  Shares           Security       (Instr. 5)     (Instr. 5)
------------------------------------------------------------------------------------------------------------------------------------
<S>                      <C>        <C>             <C>                    <C>             <C>            <C>            <C>


------------------------------------------------------------------------------------------------------------------------------------


====================================================================================================================================
</TABLE>

Reminder: Report on a separate line for each class of securities beneficially
          owned directly or indirectly.

Explanation of Responses:

(1) Reporting person is a wholly owned subsidiary of American Realty
Investors, Inc.

(2) Acquired as a result of the expiration of a cash tender offer at $19.00
per share on March 18, 2003.



/s/ Robert A. Waldman                           March 28, 2003
----------------------------------          -----------------------
Robert A. Waldman, Secretary                         Date
Signature of Reporting Person


*    If the form is filed by more than one reporting person, see Instruction
     5(b)(v).

**   Intentional misstatements or omissions of facts constitute Federal Criminal
     Violations.
     See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).





</TEXT>
</DOCUMENT>
