-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
 MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 AVVcFMVUa2omxnyrVT8BXlxJ9M7FQFQIxFJNlc3uI3S0RaxynZadjk1fj4VOy9mM
 tmy/j/SYJr/3IX6xnsk4YQ==

<SEC-DOCUMENT>0000950134-08-000351.txt : 20080410
<SEC-HEADER>0000950134-08-000351.hdr.sgml : 20080410
<ACCEPTANCE-DATETIME>20080109162040
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0000950134-08-000351
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20080109

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
<TEXT>
<HTML>
<HEAD>
<TITLE>corresp</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="29%"></TD>
    <TD width="3%"></TD>
    <TD width="35%"></TD>
    <TD width="3%"></TD>
    <TD width="29%"></TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><font size="4">METZGER &#038; McDONALD PLLC</font></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(formerly Prager, Metzger &#038; Kroemer PLLC)<BR>
<FONT style="font-variant: SMALL-CAPS"><font size="1">A PROFESSIONAL LIMITED LIABILITY COMPANY</FONT></FONT><BR>
<FONT style="font-variant: SMALL-CAPS"><font size="1">ATTORNEYS, MEDIATORS &#038; COUNSELORS</FONT></FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top"><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>
</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 align="right" valign="top"><FONT style="font-variant: SMALL-CAPS">Facsimile 214-523-3838</FONT><BR>
<FONT style="font-variant: SMALL-CAPS">214-969-7635</FONT></TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt">January&nbsp;9, 2008</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.E., Mail Stop 4561<BR>
Washington, D.C. 20549

</DIV>

<DIV align="left" style="margin-top: 0pt">
<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></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left">Attn:</TD>
    <TD>&nbsp;</TD>
    <TD>Evan Woody, Branch Chief<BR>
Jennifer Monick, Staff Accountant</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="8%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="RIGHT">Re:</TD>
    <TD>&nbsp;</TD>
    <TD>Income Opportunity Realty Investors, Inc. (Commission
File No.&nbsp;001-14784;<BR> CIK No.&nbsp;0000949961) &#151; Form&nbsp;10-K for the fiscal
year ended December&nbsp;31,<BR> 2006 filed March&nbsp;30, 2007</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 correspondence uploaded on the EDGAR system on
behalf of IOT in response to a letter of additional comment from the Staff of the
Securities and Exchange Commission dated January&nbsp;2, 2008. Schedule&nbsp;1 annexed to this
letter contains the response to the comment 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
such response, where appropriate, is a letter/page reference to the text to 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 is 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 or Steven A. Abney, Executive Vice
President and Chief Financial Officer of IOT at 469-522-4238 direct. For your future
reference, the facsimile transmission number for IOT should be 469-522-4230.
</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>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <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<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Steven C. Metzger<BR>&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 colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<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></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left">cc:</TD>
    <TD>&nbsp;</TD>
    <TD>Steven A. Abney<BR>
Executive Vice President and Chief Financial Officer<BR>
Income Opportunity Realty Investors, Inc.<BR>
1800 Valley View Lane, Suite&nbsp;300<BR>
Dallas, Texas 75234</TD>
</TR>
</TABLE>
</DIV>


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

<!-- PAGEBREAK -->
<P><HR noshade><P>
<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 COMMENT OF THE STAFF OF</B></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>THE SECURITIES AND EXCHANGE COMMISSION</B></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>BY LETTER DATED JANUARY 2, 2008 WITH RESPECT TO FORM 10-K</B></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>FOR THE FISCAL YEAR ENDED DECEMBER 31, 2006 OF</B></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>INCOME OPPORTUNITY REALTY INVESTORS, INC.</B></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>COMMISSION FILE NO. 1-14784</B></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV></DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following information is to provide a further response to an additional comment of the
Staff of the Securities and Exchange Commission rendered by letter dated January&nbsp;2, 2008 with
respect to Form 10-K Annual Report to the Securities and Exchange Commission for the fiscal year
ended December&nbsp;31, 2006 of Income Opportunity Realty Investors, Inc. (the &#147;Company&#148;). For
convenience, each comment of the Staff is restated below, with our response noted immediately
following the comment. Also included in such response is a letter/page reference to the text in
the Form 10-K for the fiscal year ended December&nbsp;31, 2006 (which was filed on March&nbsp;30, 2007).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><B>Form&nbsp;10-K for the year ended December&nbsp;31, 2006</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>Financial Statements</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>Consolidated Balance Sheets, Page 28</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Comment/Observation No.&nbsp;1. </B>We note your response to our prior comment one. Please
tell us how you have accounted for your ownership of MOPI before and after the sale of 9.14% on
April&nbsp;14, 2005. Based upon the information you provided, it would appear that you currently
consolidated the entity despite only having 19.9% ownership. Please reference the authoritative
literature you relied upon.
</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>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In Note 5 of the Company&#146;s Consolidated Financial Statements as of December&nbsp;31, 2006 and for
the year then ended (see Page 37 under Item&nbsp;8 of the Company&#146;s 2006 Form 10-K), the Company
disclosed that the April&nbsp;2002 sale of the Company&#146;s six residential apartment communities located
in Midland, Texas (the &#147;Properties&#148;) did not qualify as a sale under the requirements of SFAS No.
66 &#147;Accounting for Sales of Real Estate&#148; but was instead accounted for as financing transaction in
accordance with Paragraphs 25-29 of SFAS 66. As a result, the Company continued to include the
Properties on its consolidated balance sheet and in its results of operations and cash flows.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Note 5 went on to say that the Company along with two affiliated entities instituted a
legal proceeding in August&nbsp;2004 against the buyer over the buyer&#146;s failure to comply with certain
terms of the related purchase and sale agreements. As part of the April&nbsp;2005settlement of the
litigation, the Company and the two affiliated entities collectively received 100&nbsp;percent of the
common stock of Midland Odessa Properties, Inc. (&#147;MOPI&#148;), a Delaware corporation formerly
controlled by the
</DIV>

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

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

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">buyer. MOPI presently owns a 30&nbsp;percent limited partner interest in various
entities that in turn own the Properties (for additional explanation see Page 63 under Item&nbsp;13 of
the Company&#146;s 2006 Form 10-K). Under the terms of the settlement the Company initially received a
29.04&nbsp;percent interest in MOPI but sold a 9.14&nbsp;percent interest (while retaining a 19.9&nbsp;percent
interest) to one of the two affiliated entities in April&nbsp;2005 for approximately $475,000 in cash.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As stated above, the Company accounted for the original April&nbsp;2002 transaction as a financing
transaction in accordance with SFAS 66 and continues to include the Properties in its consolidated
financial statements, despite the fact that from a legal perspective IORI indirectly owns a
non-controlling interest in the entities that own the Properties (the Company and its two
affiliated entities continue to bear all the economic risks and rewards of ownership including but
not limited to the Company&#146;s absolute right to approve any future sale of the Properties).
However, since the Company&#146;s sale of 9.14&nbsp;percent out of its 29.04&nbsp;percent interest in MOPI to an
affiliated entity was settled in cash at a price determined to be &#147;arm&#146;s length,&#148; that transaction
was recognized under the &#147;full accrual&#148; method prescribed by SFAS 66 and recorded as a minority
interest in the Company&#146;s consolidated financial statements. The Company increases (or decreases)
the minority interest for 9.14&nbsp;percent of the Properties&#146; net income (or loss).
</DIV>


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




</BODY>
</HTML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
