4509 Merle Dr, Austin, TX 78745

One property. Endless potential. Unlock a rare opportunity in a prime South Austin location! 4509 Merle Street pairs an extensively renovated cottage with rare development and income potential. Set on a generous 0.28-acre lot, this property offers endless possibilities for a range of buyers - homeowners, investors, and developers alike. Live, build, or invest! First-time buyer? Own a charming, move-in-ready home under $500K just four miles from South Congress. Multi-generational living? The cleared rear portion of the lot offers potential for up to two additional dwelling units (ADUs), creating a private family compound.nInvestor or developer? Add ADUs for three income streams or condoize and sell multiple homes separately. The cottage: Built in 1953, this 1,164-square-foot, 3-bedroom, 1-bath home blends timeless character with modern upgrades. Original hardwood floors, curved archways, and a cozy banquette set the tone, while over $80,000 in improvements deliver peace of mind-updated plumbing, siding, windows, insulation, HVAC, water heater, front porch, and more (detailed list available). The bathroom was fully gutted, expanded and rebuilt in 2025, featuring custom tile, a natural wood vanity, marble countertops, and sleek matte black fixtures for a spa-like feel. The location: Tucked away on a quiet, tree-lined street, yet just minutes to South Congress, South Lamar, downtown, Central Market, and the airport. Opportunities like this dont come around often in South Austin.