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<SEC-DOCUMENT>0000950134-05-018560.txt : 20060816
<SEC-HEADER>0000950134-05-018560.hdr.sgml : 20060816
<ACCEPTANCE-DATETIME>20050929170009
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0000950134-05-018560
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20050929

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			INCOME OPPORTUNITY REALTY INVESTORS INC /TX/
		CENTRAL INDEX KEY:			0000949961
		STANDARD INDUSTRIAL CLASSIFICATION:	REAL ESTATE INVESTMENT TRUSTS [6798]
		IRS NUMBER:				752615944
		STATE OF INCORPORATION:			NV
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		1800 VALLEY VIEW LANE
		STREET 2:		SUITE 300
		CITY:			DALLAS
		STATE:			TX
		ZIP:			75234
		BUSINESS PHONE:		4685224200

	MAIL ADDRESS:	
		STREET 1:		1800 VALLEY VIEW LANE
		STREET 2:		SUITE 300
		CITY:			DALLAS
		STATE:			TX
		ZIP:			75234
</SEC-HEADER>
<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>1
<FILENAME>filename1.htm
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center" style="font-size: 12pt; margin-top: 18pt">METZGER &#038; McDONALD PLLC<p>
</DIV>

<DIV align="center" style="font-size: 8pt">(formerly Prager, Metzger &#038; Kroemer PLLC)<br>
<FONT style="font-variant: SMALL-CAPS">A PROFESSIONAL LIMITED LIABILITY COMPANY</FONT><br>
<FONT style="font-variant: SMALL-CAPS">ATTORNEYS, MEDIATORS &#038; COUNSELORS</FONT><p></DIV>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
</TR>
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<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><FONT style="font-variant: SMALL-CAPS">Steven C. Metzger</FONT><br>
<FONT style="font-variant: SMALL-CAPS">Direct Dial 214-740-5030</FONT><br>
<FONT style="font-variant: SMALL-CAPS">smetzger@pmklaw.com</FONT><br>
<br>
<br>
<br>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-variant: SMALL-CAPS">3626 N. Hall Street, Suite&nbsp;800</FONT><br>
<FONT  style="font-variant: SMALL-CAPS">Dallas, Texas 75219-5133</FONT><br>
<FONT style="font-variant: SMALL-CAPS">214-969-7600</FONT><br>
<FONT style="font-variant: SMALL-CAPS">www.pmklaw.com</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top"><br>
<FONT style="font-variant: SMALL-CAPS">Facsimile 214-523-3838</FONT><br>
<FONT style="font-variant: SMALL-CAPS">214-969-7635</font>
<br>
<br>
<br></TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt">September&nbsp;28, 2005</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B><I>Via EDGAR</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Securities and Exchange Commission<BR>
100 F Street, N.W.<BR>
Washington, D.C. 20549

</DIV>

<DIV align="left" style="margin-top: 12pt">
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<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left">Attn:</TD>
    <TD>&nbsp;</TD>
    <TD>Steven Jacobs, Accounting Branch Chief<br>
Rachel Zablow, Staff Accountant<BR>
Division of Corporation Finance</TD>
</TR>
</TABLE>
</DIV>




<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Re:</TD>
    <TD>&nbsp;</TD>
    <TD>Income Opportunity Realty Investors, Inc. (Commission<br>
File No.&nbsp;001-14784; CIK No.&nbsp;0000949961) B Form&nbsp;10-K/A for the<br>
fiscal year ended December&nbsp;31, 2004 filed March&nbsp;31, 2005</TD>
</TR>
</TABLE>
</DIV>




<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Ladies and Gentlemen:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On behalf of Income Opportunity Realty Investors, Inc., a Nevada corporation
(&#147;IOT&#148;), this letter is being filed as a supplemental letter uploaded on the EDGAR
system on behalf of IOT in response to a letter of further comments of the Staff of
the Securities and Exchange Commission dated September&nbsp;19, 2005. Schedule&nbsp;1 annexed
to this letter contains the responses to the comments of the Staff. In each instance
on such Schedule, for convenience, each comment of the Staff is repeated, followed in
each instance by the applicable response to such comment or explanation. Also included
in each response, where appropriate, is a letter/page reference to the text of the
applicable document or instrument referenced in the comment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This letter and Schedule&nbsp;1 are being filed under the EDGAR system in direct
response to the comment of the Staff. If you would like to discuss any item
concerning the referenced matter or included in this letter or Schedule&nbsp;1, please do
not hesitate to contact the undersigned at any time at 214-740-5030 direct.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
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    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Very truly yours,<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">/s/ Steven C. Metzger
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Steven C. Metzger&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">SCM:ag<BR>
Enclosures

</DIV>

<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left">cc:</TD>
    <TD>&nbsp;</TD>
    <TD>R. Neil Crouch II<br>
Ken L. Joines</TD>
</TR>
</TABLE>
</DIV>




<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>SCHEDULE 1</B></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>Response to Comments of the Staff of<BR>
The Securities and Exchange Commission<BR>
by letter dated September&nbsp;19, 2005 with respect to<BR>
Form&nbsp;10-K/A for the year ended December&nbsp;31, 2004 of<BR>
Income Opportunity Realty Investors, Inc.<BR>
Commission File No.&nbsp;001-14784</B></DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following information is intended to provide a response to comments of the
Staff of the Securities and Exchange Commission rendered by letter dated September&nbsp;19,
2005, with respect to Form 10-K/A Amendment to Annual Report to the Securities and
Exchange Commission for the fiscal year ended December&nbsp;31, 2004 of Income Opportunity
Realty Investors, Inc. For convenience, each comment of the Staff is restated below,
with our response noted immediately following each comment. Also included in such
response is a letter/page reference to the text in the Form 10-K/A for the fiscal year
ended December&nbsp;31, 2004, as applicable, and/or a reference to the date of supplemental
information provided to the Staff. For convenience, in the responses, Income
Opportunity Realty Investors, Inc. is referred to as the &#147;Registrant&#148; or the &#147;Issuer&#148;
or the &#147;Company&#148; or &#147;IOT.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U>Form 10-K/A for the Fiscal Year Ended December&nbsp;31, 2003</U><BR>
<U>Form 10-K/A for the Fiscal Year Ended December&nbsp;31, 2004</U><BR>
<U>Form 10-Q/A for the Quarter Ended March&nbsp;31, 2005</U>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Comment/Observation No.&nbsp;1. </B>Amend to include the certifications required by
Exchange Act Rules&nbsp;13a-14(a) and 15d-14(a).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Response to Comment/Observation No.&nbsp;1. </B>Further amendments to each of the Reports
will be filed to include the certifications required by Exchange Act Rules&nbsp;13a-14(a)
and 15d-14(a).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U>Consolidated Financial Statements</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U>Report of Independent Registered Public Accounting Firm</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Comment/Observation No.&nbsp;2. </B>Please revise the reports of independent registered
public accounting firm on page 26 to the Form 10-K/A for the year ended December&nbsp;31,
2003 and pages 30 and 31 of the Form 10-K/A for the year ended December&nbsp;31, 2004 to
include the city and state where issued. Refer to Item&nbsp;2.02(a) of Regulation&nbsp;S-X.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Response to Comment/Observation No.&nbsp;2. </B>The further amendments to Forms 10-K/A
for the fiscal years ended December&nbsp;31, 2003 and December&nbsp;31, 2004 include revised
reports of the independent registered public accounting firms to include the city and
state where issued.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U>Note 5 &#151; Notes and Interest Payable</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Comment/Observation No.&nbsp;3. </B>We have read your proposed disclosure provided to us
in response to prior Comment 2 to address the terms of your obligations to Metra as it
relates to your accounting treatment under SFAS 66. Please amend to include the
enhanced disclosure.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Response to Comment/Observation No.&nbsp;3. </B>Each of the Reports have been further
amended to include under Note 5 &#151; Notes and Interest Payable the enhanced disclosure
with respect to Metra as it relates to accounting treatment under SFAS 66.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">Schedule&nbsp;1 &#151; Page 1
</DIV>



<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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