Income Opportunity Realty Investors (IOR) 10-K 31 Mar 17 2016 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2016	Mar. 29, 2017	Jun. 30, 2016
Document And Entity Information
Entity Registrant Name	INCOME OPPORTUNITY REALTY INVESTORS INC /TX/
Entity Central Index Key	949,961
Document Type	10-K
Document Period End Date	Dec. 31, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Public Float			$ 5,546,832
Entity Common Stock, Shares Outstanding		4,168,214
Entity Common Stock, Shares held by Nonaffiliates			781,244
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2,016

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Assets
Real estate land holdings subject to sales contract, at cost	$ 22,717	$ 22,717
Total real estate	22,717	22,717
Notes and interest receivable from related parties	25,485	26,708
Less allowance for doubtful accounts	(1,826)	(1,826)
Total notes and interest receivable	23,659	24,882
Cash and cash equivalents	1	2
Receivable and accrued interest from related parties	37,768	34,313
Other assets	2,257	2,390
Total assets	86,402	84,304
Liabilities:
Accounts payable and other liabilities	23	6
Total liabilities	23	6
Shareholders' equity:
Common stock, $0.01 par value, authorized 10,000,000 shares; issued 4,173,675 and outstanding 4,168,214 shares in 2016 and 2015	42	42
Treasury stock at cost, 5,461 shares in 2016 and 2015	(39)	(39)
Paid-in capital	61,955	61,955
Retained earnings	24,421	22,340
Total shareholders' equity	86,379	84,298
Total liabilities and shareholders' equity	$ 86,402	$ 84,304

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 31, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	10,000,000	10,000,000
Common stock, shares issued	4,173,675	4,173,675
Common stock, shares outstanding	4,168,214	4,168,214
Treasury stock, shares	5,461	5,461

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Expenses:
Property operating expenses (including $0, $10 and $46 for the year ended 2016, 2015 and 2014, respectively, from related parties)	$ 61	$ 50
General and administrative (including $213, $240 and $237 for the year ended 2016, 2015 and 2014, respectively, from related parties)	466	573
Net income fee to related party	187	203
Advisory fee to related party	704	692
Total operating expenses	1,418	1,518
Net operating loss	(1,418)	(1,518)
Other income (expenses):
Interest income from related parties	4,376	4,729
Mortgage and loan interest	(652)	(706)
Total other income	3,724	4,023
Income before taxes	2,306	2,505
Income tax expense	(807)	(946)
Net income	$ 1,499	$ 1,559
Earnings per share - basic and diluted
Net income	$ 0.36	$ 0.37
Weighted average common shares used in computing earnings per share (in shares)	4,168,214	4,168,214

CONSOLIDATED STATEMENTS OF OPE5

CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Income Statement [Abstract]
Property operating expenses from related parties	$ 0	$ 10	$ 46
General and administrative from related parties	$ 213	$ 240	$ 237

CONSOLIDATED STATEMENTS OF SHAR

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Common Stock [Member]	Treasury Stock [Member]	Paid-In Capital [Member]	Retained Earnings [Member]
Balance, beginning at Dec. 31, 2013	$ 81,240	$ 42	$ (39)	$ 61,955	$ 19,282
Balance, beginning, shares at Dec. 31, 2013		4,173,675
Net Income	1,559				1,559
Balance, ending at Dec. 31, 2014	82,799	$ 42	(39)	61,955	20,841
Balance, ending, shares at Dec. 31, 2014		4,173,675
Net Income	1,499				1,499
Balance, ending at Dec. 31, 2015	84,298	$ 42	(39)	61,955	22,340
Balance, ending, shares at Dec. 31, 2015		4,173,675
Net Income	2,081				2,081
Balance, ending at Dec. 31, 2016	$ 86,379	$ 42	$ (39)	$ 61,955	$ 24,421
Balance, ending, shares at Dec. 31, 2016		4,173,675

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Cash Flow From Operating Activities:
Net income	$ 2,081	$ 1,499	$ 1,559
Decrease (increase) in assets:
Accrued interest receivable from related parties	1,223	(1,385)	3,232
Other assets	133	191	(32)
Increase (decrease) in liabilities:
Other liabilities	17	(31)	(179)
Net cash (used in) provided by operating activities	3,454	274	4,580
Cash Flow From Investing Activities:
Proceeds from easement transfer		3,000
Acquisition of land held for development			(1,202)
Real estate improvements			(4)
Related party receivables	(3,455)	6,961	(1,253)
Net cash provided by (used in) investing activities	(3,455)	9,961	(2,459)
Cash Flow From Financing Activities:
Payments on notes payable to related parties		(10,240)	(2,117)
Net cash used in financing activities		(10,240)	(2,117)
Net increase in cash and cash equivalents	(1)	(5)	4
Cash and cash equivalents, beginning of period	2	7	3
Cash and cash equivalents, end of period	1	2	7
Supplemental disclosures of cash flow information:
Cash paid for interest		$ 534	$ 674
Cash paid for income taxes	$ 25

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2016
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation. Organization and business. Transcontinental Realty Investors, Inc. (“TCI”) owns approximately 81.1% of the Company’s common stock. Accordingly, IOT’s financial results are consolidated with those of TCI and its subsidiaries. IOT is a “C” corporation for U.S. federal income tax purposes and is included in the annual consolidated income tax return with of TCI’s parent American Realty Investors, Inc. (“ARL”) and its ultimate parent, May Realty Holdings, Inc. TCI has no employees. IOT invests in real estate through direct ownership, leases and partnerships and also invests in mortgage loans on real estate. Pillar Income Asset Management, Inc. (“Pillar”) is the Company’s external Advisor and Cash Manager. Although the Board of Directors is directly responsible for managing the affairs of IOT, and for setting the policies which guide it, the day-to-day operations of IOT are performed by Pillar, as the contractual Advisor, under the supervision of the Board. Pillar’s duties include, but are not limited to, locating, evaluating and recommending real estate and real estate-related investment opportunities and arranging debt and equity financing for the Company with third party lenders and investors. Additionally, Pillar serves as a consultant to the Board with regard to their decisions in connection with IOT’s business plan and investment policy. Pillar also serves as an Advisor and Cash Manager to TCI and ARL. Our primary business is investing in real estate and mortgage receivables. Land held for development or sale is our sole operating segment. At December 31, 2016, our land consisted of 131.1 acres of developable land held subject to a sales contract. All of our land holdings are located in Farmers Branch, Texas. The principal source of revenue for the Company is interest income on approximately $23.7 million of notes receivable due from related parties. Basis of presentation . In determining whether we are the primary beneficiary of a VIE, we consider qualitative and quantitative factors, including, but not limited to: the amount and characteristics of our investment; the obligation or likelihood for us or other investors to provide financial support; our and the other investors’ ability to control or significantly influence key decisions for the VIE; and the similarity with and significance to the business activities of us and the other investors. Significant judgments related to these determinations include estimates about the current future fair values and performance of real estate held by these VIEs and general market conditions. As of December 31, 2016, IOT was not the primary beneficiary of a VIE. For entities in which we have less than a controlling financial interest or entities where it is not deemed to be the primary beneficiary, the entities are accounted for using the equity method of accounting. Accordingly, our share of the net earnings or losses of these entities is included in consolidated net income. Real estate, depreciation and impairment. Property, Plant and Equipment Any properties that are treated as “subject to sales contract” on the Consolidated Balance Sheets and are listed in detail in Schedule III, Real Estate and Accumulated Depreciation Impairment or Disposal of Long-Lived Assets Transfers to or from TCI or other related parties reflect a sales price equal to the cost basis in the asset at the time of the sale. Real estate held for sale Cost Capitalization A variety of costs are incurred in the acquisition, development and leasing of properties. After determination is made to capitalize a cost, it is allocated to the specific component of a project that is benefited. Determination of when a development project is substantially complete and capitalization must cease involves a degree of judgment. Our capitalization policy on development properties is guided by ASC 835-20 Interest – Capitalization of Interest Real Estate - General Fair value measurement Fair Value Measurements and Disclosures The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date and includes three levels defined as follows: Level 1—Unadjusted quoted prices for identical and unrestricted assets or liabilities in active markets. Level 2—Quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. Level 3—Unobservable inputs that are significant to the fair value measurement. A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Management reviews the carrying values of our properties and mortgage notes receivable at least annually and whenever events or a change in circumstances indicates that impairment may exist. Impairment is considered to exist if the future cash flow from a property (undiscounted and without interest) is less than the carrying amount of the property. For notes receivable, impairment is considered to exist if it is probable that all amounts due under the terms of the note will not be collected. The note receivable review includes an evaluation of the collateral property securing such note. If impairment is found to exist, a provision for loss is recorded by a charge against earnings. The property review generally includes: (1) selective property inspections; (2) a review of the property’s current rents compared to market rents; (3) a review of the property’s expenses; (4) a review of maintenance requirements; (5) a review of the property’s cash flow; (6) discussions with the manager of the property; and (7) a review of properties in the surrounding area. Related parties Business Combinations Recognition of revenue. Sales and the associated gains or losses of real estate assets are recognized in accordance with the provisions of ASC 360-20, Property, Plant and Equipment—Real Estate Sale Non-performing notes receivable . Interest recognition on notes receivable. Allowance for estimated losses. Notes and Interest Receivable from Related Parties Cash equivalents . Earnings per share . Earnings Per Share Use of estimates. Income Taxes. Recent Accounting Pronouncements. In May 2014, Accounting Standards Update No. 2014-09 (“ASU 2014-09”), Revenue from Contracts with Customers In February 2016, ASU 2016-02 (“ASU 2016-02”), Leases

REAL ESTATE

REAL ESTATE	12 Months Ended
	Dec. 31, 2016
Real Estate [Abstract]
REAL ESTATE	NOTE 2. REAL ESTATE At December 31, 2016 and 2015, our real estate land holdings consisted of 131.1 developable acres of land held subject to a sales contract with a carrying value of $22.7 million at each period end. All of the land is located in Farmers Branch, Texas. During September 2015, the Company, in exchange for a $3.0 million payment, granted additional easement rights to the City of Farmers Branch, Texas. The Company retained title to the property and recorded the payment as a reduction in real estate land holdings. In November 2015, the Company entered into a sales contract with an unrelated party. The contract was for all of the developable land owned by the Company. In addition, TCI, ARL and RAI also sold land in this transaction. Total consideration for the sale was $75 million. The ultimate allocation of sales proceeds to the parties involved is yet to be determined and will be completed when the final use of the land, certain development commitments are completed and the note is collected. The agreement between the parties to this transaction provides for TCI to hold the subordinated note from the buyer in the amount of $50 million. At the closing, the note payable to related parties of $9.6 million was paid off. Due to an inadequate down payment from the buyer and the level of seller financing involved, the transaction is being accounted for under the deposit method. Under the deposit method, no revenue is recognized and the asset sold remains on the books until the criteria for full revenue recognition are met. Concentration of investment risk.

NOTES AND INTEREST RECEIVABLE F

NOTES AND INTEREST RECEIVABLE FROM RELATED PARTIES	12 Months Ended
	Dec. 31, 2016
NOTES AND INTEREST RECEIVABLE FROM RELATED PARTIES
NOTES AND INTEREST RECEIVABLE FROM RELATED PARTIES	NOTE 3. NOTES AND INTEREST RECEIVABLE FROM RELATED PARTIES Notes and interest receivable from related parties is comprised of junior mortgage loans, which are loans secured by mortgages that are subordinate to one or more prior liens on the underlying real estate. Recourse on the loans ordinarily includes the real estate which secures the loan, other collateral and personal guarantees of the borrower. All of the Company’s notes receivable are with Unified Housing Foundation, Inc. (“UHF”). UHF is considered a related party to the Company due to our significant investment in the performance of the collateral secured under the notes receivable. As of January 1, 2013, the Company agreed to extend the maturity on the notes receivable from UHF for an additional term of five years for the early termination of the preferred interest rate period. The original notes gave a five-year period of preferred interest rate at 5.25%, before returning to the original note rate of 12.0%. The notes mature in December 2032 and have interest rates of 12.0%. Payments are due from surplus cash flow from operations, sale or refinancing of the underlying properties. These notes are cross collateralized to the extent that any surplus cash available from any of the properties underlying these notes will be used to repay outstanding interest and principal for the remaining notes. Furthermore, any surplus cash available from any of the properties UHF owns, besides the properties underlying these notes, can be used to repay outstanding interest and principal for these notes. The allowance on the notes was a purchase allowance that was netted against the notes when acquired. At December 2016 and 2015, notes and interest receivable from related parties, net of allowances, totaled $23.7 million and $24.9 million, respectively. As of December 31, 2016 and 2015, we recognized interest income of $3.0 million and $2.7 million, respectively, related to these notes. Below is a summary of notes and interest receivable from related parties (dollars in thousands): Borrower Maturity Interest Amount Security Performing loans: Unified Housing Foundation, Inc. (Echo Station) 12 /32 12.00 % $ 1,481 Secured Unified Housing Foundation, Inc. (Lakeshore Villas) 12 /32 12.00 % 2,000 Unsecured Unified Housing Foundation, Inc. (Lakeshore Villas) 12 /32 12.00 % 6,368 Secured Unified Housing Foundation, Inc. (Limestone Canyon) 12 /32 12.00 % 2,653 Secured Unified Housing Foundation, Inc. (Limestone Ranch) 12 /32 12.00 % 1,953 Secured Unified Housing Foundation, Inc. (Parkside Crossing) 12 /32 12.00 % 1,936 Secured Unified Housing Foundation, Inc. (Sendero Ridge) 12 /32 12.00 % 4,491 Secured Unified Housing Foundation, Inc. (Timbers of Terrell) 12 /32 12.00 % 1,323 Secured Unified Housing Foundation, Inc. (Tivoli) 12 /32 12.00 % 1,826 Secured Accrued interest 1,454 Total Performing $ 25,485 Allowance for estimated losses (1,826 ) Total $ 23,659 All are related party notes.

NOTES AND INTEREST PAYABLE

NOTES AND INTEREST PAYABLE	12 Months Ended
	Dec. 31, 2016
Debt Disclosure [Abstract]
NOTES AND INTEREST PAYABLE	NOTE 4. NOTES AND INTEREST PAYABLE On December 30, 2013, Realty Advisors, Inc. (“RAI”), a related party, obtained a $20 million mortgage to a lender on the Company’s behalf, secured by land owned by the Company and 100.05 acres of land owned by its parent TCI. The Company and TCI executed a promissory note to RAI for the same terms as the lender’s loan with a maturity of December 30, 2016, and a variable interest rate of prime plus 1.5% with an interest rate floor of 6%. In November 2015, the Company entered into a sales contract with an unrelated party. The contract was for all of the developable land owned by the Company. In addition, TCI, ARL and RAI also sold land in this transaction. Total consideration for the sale was $75 million. The agreement between the parties and TCI related to this transaction provides for TCI to hold the subordinated note from the buyer in the amount of $50 million. At the closing, the Note Payable to related parties of $9.6 million was paid off. Due to an inadequate down payment from the buyer and the level of seller financing involved, the transaction is being accounted for under the deposit method. Under the deposit method, no revenue is recognized and the asset sold remains on the books until the criteria for full revenue recognition are met.

RELATED PARTY TRANSACTIONS AND

RELATED PARTY TRANSACTIONS AND FEES	12 Months Ended
	Dec. 31, 2016
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS AND FEES	NOTE 5. RELATED PARTY TRANSACTIONS AND FEES The Advisory agreement provides for Pillar or a related party of Pillar to receive fees and cost reimbursements as defined in Part III, Item 10. Directors, Executive Officers and Corporate Governance—The Advisor Fees: 2016 2015 2014 Advisory $ 639 $ 704 $ 692 Net income 257 187 203 Tax sharing agreement — — 946 $ 896 $ 891 $ 1,841 Other Expense: Cost reimbursements $ 213 $ 240 $ 237 Revenue: Interest received $ 1,484 $ 1,636 $ 1,692 As of December 31, 2016, IOT has notes and interest receivable of $23.7 million due from Unified Housing Foundation, Inc. and recognized interest income of $3.0 million related to these notes receivable. (See details in Part 2, Item 8, above, Note 3. Notes and Interest Receivable from Related Parties The following table reconciles the beginning and ending balances of amounts receivable from related parties as of December 31, 2016 (dollars in thousands): TCI Pillar Total Balance, December 31, 2015 $ 34,313 $ — $ 34,313 Cash transfers — 4,209 4,209 Advisory fees — (639 ) (639 ) Net income fee — (257 ) (257 ) Cost reimbursements — (213 ) (213 ) Expenses paid by advisor — (33 ) (33 ) Interest income 1,484 — 1,484 Income tax expense — (1,096 ) (1,096 ) Purchase of obligation 1,971 (1,971 ) — Balance, December 31, 2016 $ 37,768 $ — $ 37,768 IOT is part of a tax sharing and compensating agreement with respect to federal income taxes between ARL, TCI and IOT and their subsidiaries. The expense (benefit) in each year was calculated based on the amount of losses absorbed by taxable income multiplied by the maximum statutory tax rate of 35%. There were no payments under this agreement in 2016.

DIVIDENDS

DIVIDENDS	12 Months Ended
	Dec. 31, 2016
Dividends [Abstract]
DIVIDENDS	NOTE 6. DIVIDENDS IOT’s Board of Directors established a policy that dividend declarations on common stock would be determined on an annual basis following the end of each year. In accordance with that policy, no dividends on IOT’s common stock were declared for 2016, 2015 or 2014. Future distributions to common stockholders will be determined by the Board of Directors in light of conditions then existing, including the Company’s financial condition and requirements, future prospects, restrictions in financing agreements, business conditions and other factors deemed relevant by the Board.

INCOME TAXES

INCOME TAXES	12 Months Ended
	Dec. 31, 2016
Income Tax Disclosure [Abstract]
INCOME TAXES	NOTE 7. INCOME TAXES For tax periods ending before August 31, 2012, IOT was part of the American Realty Investors, Inc. consolidated federal return. After that date, IOT and the rest of the American Realty Investors, Inc. (ARL) group joined the May Realty Holdings, Inc. (MRHI) consolidated group for tax purposes. The income tax expense for the first part of the 2012 tax period was calculated under a tax sharing and compensating agreement between ARL, TCI and IOT. That agreement continued until August 31, 2012 at which time a new tax sharing and compensating agreement was entered into by ARL, TCI, IOT and MRHI for the remainder of 2012 and subsequent years. For 2016, MRHI, ARL, TCI and IOT had combined net taxable income and IOT recorded a current tax expense of approximately $1.1 million. The expense is calculated based on the amount of losses absorbed by taxable income multiplied by the statutory rate of 35% per the tax sharing and compensating agreements Current income tax expense is attributable to (dollars in thousands): 2016 2015 2014 Income from continuing operations before tax $ 3,202 $ 2,306 $ 2,505 The following table presents the principal reasons for the differences between the Company’s effective tax rate and the United States statutory income tax rate of 35% (dollars in thousands): 2016 2015 2014 Federal income tax at statutory rate $ 1,121 $ 807 $ 877 Gain on sale differences — 1,324 — Other 115 — — Effective income tax rate 35 % 35 % 35 % Deferred income taxes reflect the tax effects of temporary timing differences between carrying amounts of assets and liabilities reflected on the financial statements and the amounts used for income tax purposes. IOT’s tax basis in its net assets differs from the amount at which its net assets are reported for financial statement purposes, principally due to the accounting for gains and losses on property sales, and depreciation on owned properties. The tax effects of temporary differences and net operating loss carry forwards that give rise to the deferred tax assets are presented below (dollars in thousands): 2016 2015 2014 Accumulated depreciation and amortization $ — $ — $ (516 ) Assets sold for tax, not yet recognized for book 685 685 — Allowance for loss 639 639 694 Deferred tax asset 1,324 1,324 178 Less valuation allowance — — — Total deferred tax asset $ 1,324 $ 1,324 $ 178 For years prior to December 31, 2016, IOT had deferred tax assets of approximately $1.4 million and $0.2 million as of December 31, 2015 and 2014, respectively, on a stand-alone basis. In 2015, the company used approximately $5.9 million of losses from the ARL consolidated group. In 2014, IOT used approximately $2.7 million of losses from the consolidated group. On a stand-alone basis, there is no NOL carryforward for IOT. However, the Federal Consolidated group for which IOT is a member has a NOL carryforward of approximately $144 million as of December 31, 2016, which is more than sufficient to absorb IOT’s taxable income for 2016. Of the $144 million of NOL carryforward, approximately $2.8 million of it is attributable to IOT under Federal Income tax allocation rules. The alternative minimum tax credit balance is approximately $0.3 million. The credit has no expiration date.

OPERATING SEGMENTS

OPERATING SEGMENTS	12 Months Ended
	Dec. 31, 2016
Segment Reporting [Abstract]
OPERATING SEGMENTS	NOTE 8. OPERATING SEGMENTS Our segments are based on management’s method of internal reporting which classifies its operations by property type. The Company’s reportable segments are land held subject to a sales contract and other. Significant differences among the accounting policies of the operating segments as compared to the Consolidated Financial Statements principally involve the calculation and allocation of administrative and other expenses. Management evaluates the performance of each of the operating segments and allocates resources to them based on their net operating income and cash flow. Items of income that are not reflected in the segments are interest, other income, gain on debt extinguishment and equity in partnerships. Expenses that are not reflected in the segments are provision for losses, advisory, net income and incentive fees, general and administrative and non-controlling interests. The segment labeled as “Other” consists of revenue and operating expenses related to the notes receivable and corporate debt. The Company’s segments are based on our method of internal reporting which classifies operations by the type of property in the portfolio. The Company’s segments by use of property are land and other (dollars in thousands): For the Twelve Months Ended December 31, 2016 Land Other Total Operating revenue $ — $ — $ — Interest income — 4,494 4,494 Segment operating income (loss) $ — $ 4,494 $ 4,494 Capital expenditures — — — Assets 22,717 — 22,717 Land Other Total For the Twelve Months Ended December 31, 2015 Operating revenue $ — $ — $ — Operating expenses (26 ) (35 ) (61 ) Mortgage and loan interest (652 ) — (652 ) Interest income — 4,376 4,376 Segment operating income (loss) $ (678 ) $ 4,341 $ 3,663 Capital expenditures — — — Assets 22,717 — 22,717 Land Other Total For the Twelve Months Ended December 31, 2014 Operating revenue $ — $ — $ — Operating expenses (50 ) — (50 ) Mortgage and loan interest (706 ) — (706 ) Interest income — 4,729 4,729 Segment operating income (loss) $ (756 ) $ 4,729 $ 3,973 Capital expenditures — — — Assets 25,717 — 25,717 The table below reflects the reconciliation of the segment information to the corresponding amounts in the Consolidated Statements of Operations (dollars in thousands): 2016 2015 2014 Segment operating income $ 4,494 $ 3,663 $ 3,973 Other non-segment items of income (expense) General and administrative (396 ) (466 ) (573 ) Net income fee (257 ) (187 ) (203 ) Advisory fee to related party (639 ) (704 ) (692 ) Income tax expense (1,121 ) (807 ) (946 ) Net income $ 2,081 $ 1,499 $ 1,559 The table below reflects the reconciliation of the segment information to the corresponding amounts in the Consolidated Balance Sheets (dollars in thousands): 2016 2015 Segment assets $ 22,717 $ 22,717 Notes and interest receivable 23,659 24,882 Other assets and receivables 40,026 36,705 Total assets $ 86,402 $ 84,304

QUARTERLY DATA

QUARTERLY DATA	12 Months Ended
	Dec. 31, 2016
Quarterly Financial Information Disclosure [Abstract]
QUARTERLY DATA	NOTE 9. QUARTERLY DATA The following is a table of quarterly results of operations for the years 2016, 2015 and 2014: Three Months Ended 2016 March 31, June 30, September 30, December 31, (dollars in thousands, except per share amounts) 2016 Rental and other property revenues $ — $ — $ — $ — Total operating expenses 318 342 343 289 Operating loss (318 ) (342 ) (343 ) (289 ) Other income, net of other expenses 1,211 1,085 1,095 1,103 Income before gain on land sales, non-controlling interest, and taxes 893 743 752 814 Income tax expense — — (25 ) (1,096 ) Net income (loss) $ 893 $ 743 $ 727 $ (282 ) PER SHARE DATA Earnings per share - basic and diluted Net income (loss) applicable to common shares $ 0.21 $ 0.18 $ 0.17 $ (0.07 ) Weighted average common shares used in computing earnings per share 4,168,214 4,168,214 4,168,214 4,168,214 Three Months Ended 2015 March 31, June 30, September 30, December 31, (dollars in thousands, except per share amounts) 2015 Rental and other property revenues $ — $ — $ — $ — Total operating expenses 401 352 345 320 Operating loss (401 ) (352 ) (345 ) (320 ) Other income, net of other expenses 955 955 1,025 789 Income before gain on land sales, non-controlling interest, and taxes 554 603 680 469 Income tax expense — — — (807 ) Net income (loss) $ 554 $ 603 $ 680 $ (338 ) PER SHARE DATA Earnings per share—basic and diluted Net income (loss) applicable to common shares $ 0.13 $ 0.14 $ 0.16 $ (0.08 ) Weighted average common shares used in computing earnings per share 4,168,214 4,168,214 4,168,214 4,168,214 Three Months Ended 2014 March 31, June 30, September 30, December 31, (dollars in thousands, except per share amounts) 2014 Rental and other property revenues $ — $ — $ — $ — Total operating expenses 390 363 380 385 Operating loss (390 ) (363 ) (380 ) (385 ) Other income, net of other expenses 949 1,058 1,003 1,013 Income before gain on land sales, non-controlling interest, and taxes 559 695 623 628 Income tax expense — — — (946 ) Net income (loss) $ 559 $ 695 $ 623 $ (318 ) PER SHARE DATA Earnings per share—basic and diluted Net income (loss) applicable to common shares $ 0.13 $ 0.17 $ 0.15 $ (0.08 ) Weighted average common shares used in computing earnings per share 4,168,214 4,168,214 4,168,214 4,168,214

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Dec. 31, 2016
Commitments and contingenciestextblock
COMMITMENTS AND CONTINGENCIES	NOTE 10. COMMITMENTS, CONTINGENCIES AND LIQUIDITY Litigation The Company and its subsidiaries, from time to time, have been involved in various items of litigation incidental to and in the ordinary course of its business and, in the opinion of management; the outcome of such litigation will not have a material adverse impact upon the Company’s financial condition, results of operations or liquidity. Liquidity Management anticipates that IOT will generate excess cash from operations in 2017 due to the interest collected from notes receivable. Management intends to reduce its cash invested with its Advisor to meet its cash requirements not funded through operations.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	12 Months Ended
	Dec. 31, 2016
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 11. SUBSEQUENT EVENTS The Company has evaluated subsequent events through March 29, 2017, the date the financial statements were available to be issued, and has determined that there are none to be reported.

SCHEDULE III REAL ESTATE

SCHEDULE III REAL ESTATE	12 Months Ended
	Dec. 31, 2016
SEC Schedule III, Real Estate and Accumulated Depreciation Disclosure [Abstract]
SCHEDULE III REAL ESTATE	INCOME OPPORTUNITY REALTY INVESTORS, INC. Real Estate December 31, 2016 Gross Amounts at Which Initial Cost Carried at End of Year Encumbrances Land Building & Improvements Cost Capitalized Land Building & Improvements Total (dollars in thousands) Properties Held for Investment Land, Farmers Branch, TX $ — $ 22,713 $ 4 $ — $ 22,713 $ 4 $ 22,717 $ — $ 22,713 $ 4 $ — $ 22,713 $ 4 $ 22,717 INCOME OPPORTUNITY REALTY INVESTORS, INC. Real Estate For the Years Ended December 31, 2016 2015 2014 (dollars in thousands) Reconciliation of Real Estate Balance at January 1 $ 22,717 $ 25,717 $ 24,511 Additions Acquisitions and improvements — — 1,206 Deductions Sale of real estate — (3,000 ) — Balance at December 31 $ 22,717 $ 22,717 $ 25,717 At December 31, 2016, our real estate consisted of 131.1 acres of land held subject to sales contract. There was no accumulated depreciation associated with this asset.

SCHEDULE IV MORTGAGE LOANS RECE

SCHEDULE IV MORTGAGE LOANS RECEIVABLE	12 Months Ended
	Dec. 31, 2016
Mortgage Loans on Real Estate [Abstract]
SCHEDULE IV MORTGAGE LOANS RECEIVABLE	INCOME OPPORTUNITY REALTY INVESTORS, INC. Mortgage Loans Receivable December 31, 2016 Description Interest Final Periodic Prior Liens Face Amount Carrying Principal (dollars in thousands) Unified Housing Foundation, Inc. (Echo Station/UH of Temple, LLC) 12.00 % 12/32 Excess cash flow 9,719 1,809 1,481 — 100% Interest in UH of Temple, LLC Unified Housing Foundation, Inc. (Lakeshore Villas/HFS of Humble, LLC) (31.5% of cash flow) 12.00 % 12/32 Excess cash flow 15,756 8,836 6,368 — Interest in Unified Housing Foundation Inc. Unified Housing Foundation, Inc. (Limestone Canyon/UH of Austin, LLC) 12.00 % 12/32 Excess cash flow 13,621 3,300 2,653 — 100% Interest in UH of Austin, LLC Unified Housing Foundation, Inc. (Limestone Ranch/UH of Vista Ridge , LLC) 12.00 % 12/32 Excess cash flow 18,641 2,427 1,953 — 100% Interest in UH of Vista Ridge, LLC Unified Housing Foundation, Inc. (Parkside Crossing/UH of Parkside Crossing, LLC) 12.00 % 12/32 Excess cash flow 11,544 2,409 1,936 — 100% Interest in UH of Parkside Crossing, LLC Unified Housing Foundation, Inc. (Sendero Ridge) 12.00 % 12/32 Excess cash flow 22,984 5,587 4,491 — 100% Interest in UH of Sendero Ridge, LLC Unified Housing Foundation, Inc. (Timbers at the Park/UH of Terrell, LLC) 12.00 % 12/32 Excess cash flow 7,294 1,702 1,323 — 100% Interest in UH of Terrell, LLC Unified Housing Foundation, Inc. (Tivoli) 12.00 % 12/32 Excess cash flow 10,398 2,019 1,826 — 100% Interest in UH of Tivoli, LLC Unified Housing Foundation, Inc. (Lakeshore Villas/HFS of Humble, LLC) (68.5% of cash flow) 12.00 % 12/32 Excess cash flow 15,756 2,189 2,000 — $ 24,031 Interest receivable 1,454 Allowance for estimated losses (1,826 ) $ 23,659 INCOME OPPORTUNITY REALTY INVESTORS, INC. 2016 2015 2014 (dollars in thousands) Balance at January 1, $ 26,708 $ 27,461 $ 30,693 Additions Increase of interest receivable on mortgage loans 3,011 2,738 3,037 Deductions Amounts received (4,234 ) (3,491 ) (6,269 ) Balance at December 31, $ 25,485 $ 26,708 $ 27,461

SUMMARY OF SIGNIFICANT ACCOUN21

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2016
Accounting Policies [Abstract]
Basis of presentation	Basis of presentation . In determining whether we are the primary beneficiary of a VIE, we consider qualitative and quantitative factors, including, but not limited to: the amount and characteristics of our investment; the obligation or likelihood for us or other investors to provide financial support; our and the other investors’ ability to control or significantly influence key decisions for the VIE; and the similarity with and significance to the business activities of us and the other investors. Significant judgments related to these determinations include estimates about the current future fair values and performance of real estate held by these VIEs and general market conditions. As of December 31, 2016, IOT was not the primary beneficiary of a VIE. For entities in which we have less than a controlling financial interest or entities where it is not deemed to be the primary beneficiary, the entities are accounted for using the equity method of accounting. Accordingly, our share of the net earnings or losses of these entities is included in consolidated net income.
Real estate, depreciation and impairment	Real estate, depreciation and impairment. Property, Plant and Equipment Any properties that are treated as “subject to sales contract” on the Consolidated Balance Sheets and are listed in detail in Schedule III, Real Estate and Accumulated Depreciation Impairment or Disposal of Long-Lived Assets Transfers to or from TCI or other related parties reflect a sales price equal to the cost basis in the asset at the time of the sale.
Real estate held for sale	Real estate held for sale
Cost capitalization	Cost Capitalization A variety of costs are incurred in the acquisition, development and leasing of properties. After determination is made to capitalize a cost, it is allocated to the specific component of a project that is benefited. Determination of when a development project is substantially complete and capitalization must cease involves a degree of judgment. Our capitalization policy on development properties is guided by ASC 835-20 Interest – Capitalization of Interest Real Estate - General
Fair Value Measurement	Fair value measurement Fair Value Measurements and Disclosures The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date and includes three levels defined as follows: Level 1—Unadjusted quoted prices for identical and unrestricted assets or liabilities in active markets. Level 2—Quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. Level 3—Unobservable inputs that are significant to the fair value measurement. A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Management reviews the carrying values of our properties and mortgage notes receivable at least annually and whenever events or a change in circumstances indicates that impairment may exist. Impairment is considered to exist if the future cash flow from a property (undiscounted and without interest) is less than the carrying amount of the property. For notes receivable, impairment is considered to exist if it is probable that all amounts due under the terms of the note will not be collected. The note receivable review includes an evaluation of the collateral property securing such note. If impairment is found to exist, a provision for loss is recorded by a charge against earnings. The property review generally includes: (1) selective property inspections; (2) a review of the property’s current rents compared to market rents; (3) a review of the property’s expenses; (4) a review of maintenance requirements; (5) a review of the property’s cash flow; (6) discussions with the manager of the property; and (7) a review of properties in the surrounding area.
Related parties	Related parties Business Combinations
Recognition of revenue	Recognition of revenue. Sales and the associated gains or losses of real estate assets are recognized in accordance with the provisions of ASC 360-20, Property, Plant and Equipment—Real Estate Sale
Non-performing notes receivable.	Non-performing notes receivable .
Interest recognition on notes receivable	Interest recognition on notes receivable.
Allowance for estimated losses	Allowance for estimated losses. Notes and Interest Receivable from Related Parties
Cash equivalents	Cash equivalents .
Earnings per share	Earnings per share . Earnings Per Share
Use of estimates	Use of estimates.
Income taxes	Income Taxes.
Recent accounting pronouncements	Recent Accounting Pronouncements. In May 2014, Accounting Standards Update No. 2014-09 (“ASU 2014-09”), Revenue from Contracts with Customers In February 2016, ASU 2016-02 (“ASU 2016-02”), Leases

NOTES AND INTEREST RECEIVABLE22

NOTES AND INTEREST RECEIVABLE FROM RELATED PARTIES (Tables)	12 Months Ended
	Dec. 31, 2016
Notes And Interest Receivable From Related Parties Tables
Summary of notes and interest receivable from related parties	Below is a summary of notes and interest receivable from related parties (dollars in thousands): Borrower Maturity Interest Amount Security Performing loans: Unified Housing Foundation, Inc. (Echo Station) 12 /32 12.00 % $ 1,481 Secured Unified Housing Foundation, Inc. (Lakeshore Villas) 12 /32 12.00 % 2,000 Unsecured Unified Housing Foundation, Inc. (Lakeshore Villas) 12 /32 12.00 % 6,368 Secured Unified Housing Foundation, Inc. (Limestone Canyon) 12 /32 12.00 % 2,653 Secured Unified Housing Foundation, Inc. (Limestone Ranch) 12 /32 12.00 % 1,953 Secured Unified Housing Foundation, Inc. (Parkside Crossing) 12 /32 12.00 % 1,936 Secured Unified Housing Foundation, Inc. (Sendero Ridge) 12 /32 12.00 % 4,491 Secured Unified Housing Foundation, Inc. (Timbers of Terrell) 12 /32 12.00 % 1,323 Secured Unified Housing Foundation, Inc. (Tivoli) 12 /32 12.00 % 1,826 Secured Accrued interest 1,454 Total Performing $ 25,485 Allowance for estimated losses (1,826 ) Total $ 23,659

RELATED PARTY TRANSACTIONS AN23

RELATED PARTY TRANSACTIONS AND FEES (Tables)	12 Months Ended
	Dec. 31, 2016
Related Party Transactions [Abstract]
Schedule of fees and cost reimbursements	The fees and cost reimbursements paid to Pillar, TCI and related parties are detailed below (dollars in thousands): Fees: 2016 2015 2014 Advisory $ 639 $ 704 $ 692 Net income 257 187 203 Tax sharing agreement — — 946 $ 896 $ 891 $ 1,841 Other Expense: Cost reimbursements $ 213 $ 240 $ 237 Revenue: Interest received $ 1,484 $ 1,636 $ 1,692
Schedule of transactions between IOT, Pillar, and TCI	The following table reconciles the beginning and ending balances of amounts receivable from related parties as of December 31, 2016 (dollars in thousands): TCI Pillar Total Balance, December 31, 2015 $ 34,313 $ — $ 34,313 Cash transfers — 4,209 4,209 Advisory fees — (639 ) (639 ) Net income fee — (257 ) (257 ) Cost reimbursements — (213 ) (213 ) Expenses paid by advisor — (33 ) (33 ) Interest income 1,484 — 1,484 Income tax expense — (1,096 ) (1,096 ) Purchase of obligation 1,971 (1,971 ) — Balance, December 31, 2016 $ 37,768 $ — $ 37,768

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Schedule of current income tax expense	Current income tax expense is attributable to (dollars in thousands): 2016 2015 2014 Income from continuing operations before tax $ 3,202 $ 2,306 $ 2,505
Schedule of effective income tax reconciliation	The following table presents the principal reasons for the differences between the Company’s effective tax rate and the United States statutory income tax rate of 35% (dollars in thousands): 2016 2015 2014 Federal income tax at statutory rate $ 1,121 $ 807 $ 877 Gain on sale differences — 1,324 — Other 115 — — Effective income tax rate 35 % 35 % 35 %
Schedule of deferred tax assets	The tax effects of temporary differences and net operating loss carry forwards that give rise to the deferred tax assets are presented below (dollars in thousands): 2016 2015 2014 Accumulated depreciation and amortization $ — $ — $ (516 ) Assets sold for tax, not yet recognized for book 685 685 — Allowance for loss 639 639 694 Deferred tax asset 1,324 1,324 178 Less valuation allowance — — — Total deferred tax asset $ 1,324 $ 1,324 $ 178

OPERATING SEGMENTS (Tables)

OPERATING SEGMENTS (Tables)	12 Months Ended
	Dec. 31, 2016
Segment Reporting [Abstract]
Schedule of operating segment information	The Company’s segments by use of property are land and other (dollars in thousands): For the Twelve Months Ended December 31, 2016 Land Other Total Operating revenue $ — $ — $ — Interest income — 4,494 4,494 Segment operating income (loss) $ — $ 4,494 $ 4,494 Capital expenditures — — — Assets 22,717 — 22,717 Land Other Total For the Twelve Months Ended December 31, 2015 Operating revenue $ — $ — $ — Operating expenses (26 ) (35 ) (61 ) Mortgage and loan interest (652 ) — (652 ) Interest income — 4,376 4,376 Segment operating income (loss) $ (678 ) $ 4,341 $ 3,663 Capital expenditures — — — Assets 22,717 — 22,717 Land Other Total For the Twelve Months Ended December 31, 2014 Operating revenue $ — $ — $ — Operating expenses (50 ) — (50 ) Mortgage and loan interest (706 ) — (706 ) Interest income — 4,729 4,729 Segment operating income (loss) $ (756 ) $ 4,729 $ 3,973 Capital expenditures — — — Assets 25,717 — 25,717
Schedule of segment information to the corresponding amounts in the consolidated statements of operations	The table below reflects the reconciliation of the segment information to the corresponding amounts in the Consolidated Statements of Operations (dollars in thousands): 2016 2015 2014 Segment operating income $ 4,494 $ 3,663 $ 3,973 Other non-segment items of income (expense) General and administrative (396 ) (466 ) (573 ) Net income fee (257 ) (187 ) (203 ) Advisory fee to related party (639 ) (704 ) (692 ) Income tax expense (1,121 ) (807 ) (946 ) Net income $ 2,081 $ 1,499 $ 1,559
Schedule of segment information to the corresponding amounts in the consolidated balance sheets	The table below reflects the reconciliation of the segment information to the corresponding amounts in the Consolidated Balance Sheets (dollars in thousands): 2016 2015 Segment assets $ 22,717 $ 22,717 Notes and interest receivable 23,659 24,882 Other assets and receivables 40,026 36,705 Total assets $ 86,402 $ 84,304

QUARTERLY DATA (Tables)

QUARTERLY DATA (Tables)	12 Months Ended
	Dec. 31, 2016
Quarterly Financial Information Disclosure [Abstract]
Schedule of quarterly financial information	The following is a table of quarterly results of operations for the years 2016, 2015 and 2014: Three Months Ended 2016 March 31, June 30, September 30, December 31, (dollars in thousands, except per share amounts) 2016 Rental and other property revenues $ — $ — $ — $ — Total operating expenses 318 342 343 289 Operating loss (318 ) (342 ) (343 ) (289 ) Other income, net of other expenses 1,211 1,085 1,095 1,103 Income before gain on land sales, non-contolling interest, and taxes 893 743 752 814 Income tax expense — — (25 ) (1,096 ) Net income (loss) $ 893 $ 743 $ 727 $ (282 ) PER SHARE DATA Earnings per share - basic and diluted Net income (loss) applicable to common shares $ 0.21 $ 0.18 $ 0.17 $ (0.07 ) Weighted average common shares used in computing earnings per share 4,168,214 4,168,214 4,168,214 4,168,214 Three Months Ended 2015 March 31, June 30, September 30, December 31, (dollars in thousands, except per share amounts) 2015 Rental and other property revenues $ — $ — $ — $ — Total operating expenses 401 352 345 320 Operating loss (401 ) (352 ) (345 ) (320 ) Other income, net of other expenses 955 955 1,025 789 Income before gain on land sales, non-contolling interest, and taxes 554 603 680 469 Income tax expense — — — (807 ) Net income (loss) $ 554 $ 603 $ 680 $ (338 ) PER SHARE DATA Earnings per share—basic and diluted Net income (loss) applicable to common shares $ 0.13 $ 0.14 $ 0.16 $ (0.08 ) Weighted average common shares used in computing earnings per share 4,168,214 4,168,214 4,168,214 4,168,214 Three Months Ended 2014 March 31, June 30, September 30, December 31, (dollars in thousands, except per share amounts) 2014 Rental and other property revenues $ — $ — $ — $ — Total operating expenses 390 363 380 385 Operating loss (390 ) (363 ) (380 ) (385 ) Other income, net of other expenses 949 1,058 1,003 1,013 Income before gain on land sales, non-controlling interest, and taxes 559 695 623 628 Income tax expense — — — (946 ) Net income (loss) $ 559 $ 695 $ 623 $ (318 ) PER SHARE DATA Earnings per share—basic and diluted Net income (loss) applicable to common shares $ 0.13 $ 0.17 $ 0.15 $ (0.08 ) Weighted average common shares used in computing earnings per share 4,168,214 4,168,214 4,168,214 4,168,214

SUMMARY OF SIGNIFICANT ACCOUN27

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) $ in Thousands	12 Months Ended
	Dec. 31, 2016USD ($)a	Dec. 31, 2015USD ($)
Notes and interest receivable from related parties, net | $	$ 23,659	$ 24,882
Buildings and Improvements [Member] | Minimum [Member]
Useful life	10 years
Buildings and Improvements [Member] | Maximum [Member]
Useful life	40 years
Furniture, Fixtures and Equipment [Member] | Minimum [Member]
Useful life	5 years
Furniture, Fixtures and Equipment [Member] | Maximum [Member]
Useful life	10 years
Transcontinental Realty Investors, Inc. [Member]
Percentage of ownership	81.10%
Area of land | a	131.1

REAL ESTATE (Details Narrative)

REAL ESTATE (Details Narrative) $ in Thousands	1 Months Ended		12 Months Ended
	Nov. 30, 2015USD ($)	Sep. 30, 2015USD ($)	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)	Dec. 31, 2016a
Proceeds from easement transfer		$ 3,000	$ 3,000
Payment for note payable related party			$ 10,240	$ 2,117
TCI, ARL, and RAI
Sale of land, total consideration	$ 75,000
Notes receivable - land sales	50,000
Payment for note payable related party	$ 9,600
Farmers Branch Texas [Member]
Total Land/Development | a					131.1

NOTES AND INTEREST RECEIVABLE29

NOTES AND INTEREST RECEIVABLE FROM RELATED PARTIES (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Jan. 01, 2013
Notes and interest receivable from related parties, net	$ 23,659	$ 24,882
Interest income	$ 4,494	$ 4,376	$ 4,729
Unified Housing Foundation, Inc. [Member]
Preferred Interest Rate				5.25%

NOTES AND INTEREST RECEIVABLE30

NOTES AND INTEREST RECEIVABLE FROM RELATED PARTIES (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Accrued interest	$ 1,454
Allowance for doubtful accounts	(1,826)	$ (1,826)
Total	23,659	$ 24,882
Performing Loans [Member]
Amount	25,485
Accrued interest	1,454
Allowance for doubtful accounts	(1,826)
Total	$ 23,659
Performing Loans [Member] | Unified Housing Foundation, Inc. (Echo Station) [Member]
Maturity date	Dec. 31, 2032
Interest Rate	12.00%
Amount	$ 1,481
Security	Secured
Performing Loans [Member] | Unified Housing Foundation, Inc. (Lakeshore Villas) [Member]
Maturity date	Dec. 31, 2032
Interest Rate	12.00%
Amount	$ 2,000
Security	Unsecured
Performing Loans [Member] | Unified Housing Foundation, Inc. (Lakeshore Villas) [Member]
Maturity date	Dec. 31, 2032
Interest Rate	12.00%
Amount	$ 6,368
Security	Secured
Performing Loans [Member] | Unified Housing Foundation, Inc. (Limestone Canyon) [Member]
Maturity date	Dec. 31, 2032
Interest Rate		12.00%
Amount		$ 2,653
Security	Secured
Performing Loans [Member] | Unified Housing Foundation, Inc. (Limestone Ranch) [Member]
Maturity date	Dec. 31, 2032
Interest Rate		12.00%
Amount		$ 1,953
Security	Secured
Performing Loans [Member] | Unified Housing Foundation, Inc. (Parkside Crossing) [Member]
Maturity date	Dec. 31, 2032
Interest Rate		12.00%
Amount		$ 1,936
Security	Secured
Performing Loans [Member] | Unified Housing Foundation, Inc. (Sendero Ridge) [Member]
Maturity date	Dec. 31, 2032
Interest Rate		12.00%
Amount		$ 4,491
Security	Secured
Performing Loans [Member] | Unified Housing Foundation, Inc. (Timbers of Terrell) [Member]
Maturity date	Dec. 31, 2032
Interest Rate		12.00%
Amount		$ 1,323
Security	Secured
Performing Loans [Member] | Unified Housing Foundation, Inc. (Tivoli) [Member]
Maturity date	Dec. 31, 2032
Interest Rate		12.00%
Amount		$ 1,826
Security	Secured

NOTES AND INTEREST PAYABLE (Det

NOTES AND INTEREST PAYABLE (Details Narrative) $ in Thousands	Dec. 30, 2013USD ($)a	Nov. 30, 2015USD ($)
Realty Investors, Inc [Member] | Mortgage Payable [Member]
Principal Balance	$ 20,000
Area of land | a	100.05
Realty Investors, Inc [Member] | Promissory Note [Member]
Variable interest rate basis	prime
Basis spread on variable interest rate	1.50%
Floor interest rate	6.00%
TCI, ARL, and RAI
Sale of land, total consideration		$ 75,000
Subordinated note receivable held		50,000
Notes payable		$ 9,600

RELATED PARTY TRANSACTIONS AN32

RELATED PARTY TRANSACTIONS AND FEES (Details Narrative)	12 Months Ended
	Dec. 31, 2016
Related Party Transactions [Abstract]
Stautory tax rate	35.00%

RELATED PARTY TRANSACTIONS AN33

RELATED PARTY TRANSACTIONS AND FEES (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Related Party Transactions [Abstract]
Advisory fee	$ 639	$ 704	$ 692
Net income fee	257	187	203
Related party fees	896	891	1,841
Cost reimbursements	213	240	237
Interest income	$ 1,484	$ 1,636	$ 1,692

RELATED PARTY TRANSACTIONS AN34

RELATED PARTY TRANSACTIONS AND FEES (Details 1) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Related party receivable, beginning	$ 34,313
Cash transfers	4,209
Advisory fee	(639)	$ (704)	$ (692)
Net income fee	(257)	(187)	(203)
Cost reimbursements	(213)	(240)	(237)
Expenses paid by Advisor	(33)
Interest income	1,484	1,636	$ 1,692
Income tax expense	(1,096)
Related party receivable, ending	37,768	34,313
Transcontinental Realty Investors, Inc [Member]
Related party receivable, beginning	34,313
Interest income	1,484
Purchase of obligations	1,971
Related party receivable, ending	37,768	$ 34,313
Pillar Income Asset Management, Inc [Member]
Cash transfers	4,209
Advisory fee	(639)
Net income fee	(257)
Cost reimbursements	(213)
Expenses paid by Advisor	(33)
Income tax expense	(1,096)
Purchase of obligations	$ (1,971)

INCOME TAXES (Details Narrative

INCOME TAXES (Details Narrative) - USD ($) $ in Thousands	3 Months Ended				12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Income tax expense	$ 1,096	$ 25	$ 807	$ 946	$ 1,121	$ 807	$ 946
Stautory tax rate					35.00%
Net operating loss carryforward	2,800				$ 2,800
Alternative minimum tax credit	300				300
ARL Consolidated Group [Member]
Use of operating losses						$ 5,900	$ 2,700
Consolidated Group [Member]
Net operating loss carryforward	$ 144,000				$ 144,000

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Thousands	3 Months Ended												12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Income Tax Disclosure [Abstract]
Income from continuing operations before tax	$ 814	$ 752	$ 743	$ 893	$ 469	$ 680	$ 603	$ 554	$ 628	$ 623	$ 695	$ 559	$ 3,202	$ 2,306	$ 2,505

INCOME TAXES (Details 1)

INCOME TAXES (Details 1) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Income Tax Disclosure [Abstract]
Federal income tax at statutory rate	$ 1,121	$ 807	$ 877
Gain on sale differences		$ 1,324
Other	$ 115
Effective income tax rate	35.00%	35.00%	35.00%

INCOME TAXES (Details 2)

INCOME TAXES (Details 2) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Components of deferred tax assets:
Accumulated depreciation and amortization			$ (516)
Assets sold for tax, not yet recognized for book	$ 685	$ 685
Allowance for loss	639	639	694
Deferred tax asset	1,324	1,324	178
Total deferred tax asset	$ 1,324	$ 1,324	$ 178

OPERATING SEGMENTS (Details)

OPERATING SEGMENTS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Interest income from related parties	$ 4,494	$ 4,376	$ 4,729
Property operating expenses		(61)	(50)
Segment operating income (loss)			3,973
Real estate assets	22,717	22,717
Land [Member]
Property operating expenses		(26)	(50)
Mortgage and loan interest		(652)	(706)
Segment operating income (loss)		(678)	(756)
Real estate assets	22,717	22,717	25,717
Other [Member]
Interest income from related parties	4,494	4,376	4,729
Property operating expenses		(35)
Segment operating income (loss)	4,494	4,341	4,729
Total Segments
Interest income from related parties	4,494	4,376	4,729
Property operating expenses		(61)	(50)
Mortgage and loan interest		(652)	(706)
Segment operating income (loss)	4,494	3,663	3,973
Real estate assets	$ 22,717	$ 22,717	$ 25,717

OPERATING SEGMENTS (Details 1)

OPERATING SEGMENTS (Details 1) - USD ($) $ in Thousands	3 Months Ended				12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Segment operating income							$ 3,973
Other non-segment items of expense
General and administrative					$ (396)	$ (466)	(573)
Net income fee to related party					(257)	(187)	(203)
Advisory fee to related party					(639)	(704)	(692)
Income tax expense	$ (1,096)	$ (25)	$ (807)	$ (946)	(1,121)	(807)	(946)
Net income from continuing operations							1,559
Total Segments
Segment operating income					4,494	3,663	$ 3,973
Other non-segment items of expense
General and administrative					(396)	(466)
Net income fee to related party					(257)	(187)
Advisory fee to related party					(639)	(704)
Income tax expense					(1,121)	(807)
Net income from continuing operations					$ 2,081	$ 1,499

OPERATING SEGMENTS (Details 2)

OPERATING SEGMENTS (Details 2) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Real estate assets	$ 22,717	$ 22,717
Notes and interest receivable	23,659	24,882
Other assets and receivables	2,257	2,390
Total assets	86,402	84,304
Total Segments
Real estate assets	22,717	22,717	$ 25,717
Notes and interest receivable	23,659	24,882
Other assets and receivables	40,026	36,705
Total assets	$ 86,402	$ 84,304

QUARTERLY DATA (Details)

QUARTERLY DATA (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended												12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Quarterly Financial Information Disclosure [Abstract]
Total operating expenses	$ 289	$ 343	$ 342	$ 318	$ 320	$ 345	$ 352	$ 401	$ 385	$ 380	$ 363	$ 390	$ 1,292	$ 1,418	$ 1,518
Net operating loss	(289)	(343)	(342)	(318)	(320)	(345)	(352)	(401)	(385)	(380)	(363)	(390)	(1,292)	(1,418)	(1,518)
Other income, net of other expenses	1,103	1,095	1,085	1,211	789	1,025	955	955	1,013	1,003	1,058	949	4,494	3,724	4,023
Income before taxes	814	752	743	893	469	680	603	554	628	623	695	559	3,202	2,306	2,505
Income tax expense	(1,096)	(25)			(807)				(946)				(1,121)	(807)	(946)
Net income (loss)	$ (282)	$ 727	$ 743	$ 893	$ (338)	$ 680	$ 603	$ 554	$ (318)	$ 623	$ 695	$ 559	$ 2,081	$ 1,499	$ 1,559
Earnings per share - basic and diluted
Net income (loss)	$ (0.07)	$ 0.17	$ 0.18	$ 0.21	$ (0.08)	$ 0.16	$ 0.14	$ 0.13	$ (0.08)	$ 0.15	$ 0.17	$ 0.13	$ 0.50	$ 0.36	$ 0.37
Weighted average common shares used in computing earnings per share (in shares)	4,168,214	4,168,214	4,168,214	4,168,214	4,168,214	4,168,214	4,168,214	4,168,214	4,168,214	4,168,214	4,168,214	4,168,214	4,168,214	4,168,214	4,168,214

SCHEDULE III REAL ESTATE (Detai

SCHEDULE III REAL ESTATE (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Land, initial cost	$ 22,713
Buildings and improvements, initial cost	4
Land, gross amounts carried	22,713
Buildings and improvements, gross amounts carried	4
Carrying value, total	22,717	$ 22,717	$ 25,717	$ 24,511
Farmers Branch Texas [Member]
Land, initial cost	22,713
Buildings and improvements, initial cost	4
Land, gross amounts carried	22,713
Buildings and improvements, gross amounts carried	$ 4

SCHEDULE III REAL ESTATE (Det44

SCHEDULE III REAL ESTATE (Details 1) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2016	Dec. 31, 2013
SEC Schedule III, Real Estate and Accumulated Depreciation Disclosure [Abstract]
Real Estate gross carrying value at end of year	$ 22,717	$ 25,717	$ 22,717	$ 24,511
Acquisitions and improvements, additions		$ 1,206
Sale of real estate, deductions	$ (3,000)

SCHEDULE IV MORTGAGE LOANS RE45

SCHEDULE IV MORTGAGE LOANS RECEIVABLE (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Carrying Amount of Mortgage	$ 24,031
Interest Receivable	1,454
Less allowance for doubtful accounts	(1,826)	$ (1,826)
Notes and interest receivable from related parties, net	$ 23,659	$ 24,882
Unified Housing Foundation, Inc. (Echo Station) [Member]
Location	UH of Temple, LLC
Interest Rate	12.00%
Final Maturity Date	Dec. 31, 2032
Periodic Payment Terms	Excess cash flow
Security	100% Interest in UH of Temple, LLC
Prior Liens	$ 9,719
Face Amount of Mortgage	1,809
Carrying Amount of Mortgage	$ 1,481
Unified Housing Foundation, Inc. (Lakeshore Villas) [Member]
Location	HFS of Humble, LLC
Interest Rate	12.00%
Final Maturity Date	Dec. 31, 2032
Periodic Payment Terms	Excess cash flow
Security	Interest in Unified Housing Foundation Inc
% of Cash Flow	31.50%
Prior Liens	$ 15,756
Face Amount of Mortgage	8,836
Carrying Amount of Mortgage	$ 6,368
Unified Housing Foundation, Inc. (Limestone Canyon) [Member]
Location	UH of Austin, LLC
Interest Rate	12.00%
Final Maturity Date	Dec. 31, 2032
Periodic Payment Terms	Excess cash flow
Security	100% Interest in UH of Austin, LLC
Prior Liens	$ 13,621
Face Amount of Mortgage	3,300
Carrying Amount of Mortgage	$ 2,653
Unified Housing Foundation, Inc. (Limestone Ranch) [Member]
Location	UH of Vista Ridge, LLC
Interest Rate	12.00%
Final Maturity Date	Dec. 31, 2032
Periodic Payment Terms	Excess cash flow
Security	100% Interest in UH of Vista Ridge, LLC
Prior Liens	$ 18,641
Face Amount of Mortgage	2,427
Carrying Amount of Mortgage	$ 1,953
Unified Housing Foundation, Inc. (Parkside Crossing) [Member]
Location	UH of Parkside Crossing, LLC
Interest Rate	12.00%
Final Maturity Date	Dec. 31, 2032
Periodic Payment Terms	Excess cash flow
Security	100% Interest in UH of Parkside Crossing, LLC
Prior Liens	$ 11,544
Face Amount of Mortgage	2,409
Carrying Amount of Mortgage	$ 1,936
Unified Housing Foundation, Inc. (Sendero Ridge) [Member]
Interest Rate	12.00%
Final Maturity Date	Dec. 31, 2032
Periodic Payment Terms	Excess cash flow
Security	100% of Interest in UH of Sendero Ridge, LLC
Prior Liens	$ 22,984
Face Amount of Mortgage	5,587
Carrying Amount of Mortgage	$ 4,491
Unified Housing Foundation, Inc. (Timbers of Terrell) [Member]
Location	UH of Terrell, LLC
Interest Rate	12.00%
Final Maturity Date	Dec. 31, 2032
Periodic Payment Terms	Excess cash flow
Security	100% Interest in UH of Terrell, LLC
Prior Liens	$ 7,294
Face Amount of Mortgage	1,702
Carrying Amount of Mortgage	$ 1,323
Unified Housing Foundation, Inc. (Tivoli) [Member]
Interest Rate	12.00%
Final Maturity Date	Dec. 31, 2032
Periodic Payment Terms	Excess cash flow
Security	100% Interest in UH of Tivoli, LLC
Prior Liens	$ 10,398
Face Amount of Mortgage	2,019
Carrying Amount of Mortgage	$ 1,826
Unified Housing Foundation, Inc. (Lakeshore Villas) [Member]
Location	HFS of Humble, LLC
Interest Rate	12.00%
Final Maturity Date	Dec. 31, 2032
Periodic Payment Terms	Excess cash flow
% of Cash Flow	68.50%
Prior Liens	$ 15,756
Face Amount of Mortgage	2,189
Carrying Amount of Mortgage	$ 2,000

SCHEDULE IV MORTGAGE LOANS RE46

SCHEDULE IV MORTGAGE LOANS RECEIVABLE (Details 1) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Mortgage Loans on Real Estate [Abstract]
Begining, balance	$ 26,708	$ 27,461	$ 30,693
Increase of interest receivable on mortgage loans, additions	3,011	2,738	3,037
Amounts received, deductions	(4,234)	(3,491)	(6,269)
Ending, balance	$ 25,485	$ 26,708	$ 27,461