Download PDF
← Back to overview
GOOD · 20.8% MARGIN $1M–$5M project
#1 · 5161 Commission Dr, Holly Springs, NC 27540
1.00 acre with 2 manufactured homes to demo | MLS 10186176 | Holly Springs, NC
List price$140,000 (MLS 10186176, listed Aug 13 2026 — 40 days on market)
Acreage1.00 acre (43,560 SF) — lot supports 3× 14,520 SF parcels under R-8SF 8,000 SF minimum
MLS10186176 — Coldwell Banker/Triangle MLS; listed as-is with two single-wide manufactured homes
ZoningVERIFY — likely R-8SF (8,000 SF min lot); confirm with Holly Springs Zoning 919-557-3908
UtilitiesVERIFY — public sewer/water likely; existing manufactured homes imply utility connections; call Holly Springs Utilities 919-577-3150
StrategyDemo 2 single-wide manufactured homes; subdivide 1 acre into 3 lots (~14,520 SF each); build 3 × 2,600 SF new SFH; sell at ~$305/SF
Out-of-pocket cash$506,353 (equity $404,460 + land closing $2,800 + loan closing $18,201 + carry $80,892)
Financed$1,213,380 construction loan (~75% of $1,617,840 total project)
ModeledBuilder-grade $111/SF construction; 20% Home On intro margin ($139/SF to investor); $305/SF ARV — conservative vs. $804k HS new-construction median (May 2026)
Pro Forma
| Line | Amount |
|---|
| Gross revenue — 3 homes × 2,600 SF × $305/SF (Holly Springs new-construction comps) | $2,379,000 |
| Land acquisition + closing (~2%) | ($142,800) |
| Construction — builder cost (7,800 SF × $111 builder grade) | ($866,100) |
| Home On builder margin (20% intro rate; standard 30%) | ($216,525) |
| Site development / infra — 3 lots × $70k cost ÷ 0.80 (demo 2 mobiles, utilities hookup, plat/survey/engineering) | ($262,500) |
| Soft costs — design/permits 5% of construction, at cost | ($43,305) |
| Contingency (10% of construction, AT COST — typically returned if unused) | ($86,610) |
| Construction loan closing (1.5%) + carry (10% APR on draws, 16 mo. avg ½ drawn) | ($99,093) |
| Selling costs (~7%) — paid at sale closing, not out-of-pocket | ($166,530) |
| NET PROFIT TO INVESTOR | ~$495,537 · 20.8% margin · 98% cash-on-cash |
ARV support: Holly Springs new-construction median sale price $804,508 (May 2026, 48 closings from major builders per Blue Orchid Realty). Modeled at $305/SF × 2,600 SF = $793,000/home — $11,508 below the median and $10,508 above the midpoint of the overall market ($233/SF × 2,600 SF = $606k). Fallback scenario (2 lots at $295/SF): net $238,817, 15.6% margin — MARGINAL. Single-build fallback (keep 1 acre intact, 2,800 SF at $280/SF): net $77,143, 9.8% margin — not worth pursuing. MAO $158,226 at 20% margin (3-lot, $305/SF) — asking $140,000 provides $18,226 cushion (~12% below MAO).
Diligence Gates
GO: Holly Springs ZIP 27540 address; existing manufactured homes on parcel imply live utility connections; Commission Dr has 7 confirmed residential addresses confirming improved infrastructure; 1 acre (43,560 SF) divided into 3 lots = 14,520 SF each — well above R-8SF minimum of 8,000 SF; Holly Springs aggressively expanding sewer service area; $140k ask is 11% below the $158,226 MAO.
VERIFY (SAME DAY before offer): (1) Sewer — call Holly Springs Utilities 919-577-3150; confirm 5161 Commission Dr is in the Town sewer service area. (2) Zoning — call Holly Springs Zoning 919-557-3908; confirm R-8SF zoning and that a 3-lot minor subdivision is feasible with Commission Dr road frontage (~150 ft minimum for 3 driveway curb cuts). (3) Deed — pull Wake County register of deeds for any easements, deed restrictions, or conservation overlays on PIN(s) for 5161 Commission Dr. (4) Existing utility connections — confirm with seller/agent whether homes are on public sewer/water or private septic/well.
STOP: Property outside Holly Springs public sewer service area (septic required — drops to MARGINAL single-build at ~10% margin, not worth pursuing at $140k); Rural/agricultural zoning with >8,000 SF minimum lots (reduces viable lot count, kills economics); HOA or deed covenant restricting subdivision; Front road width on Commission Dr insufficient for 3 separate driveway permits.
Verdict
Three scenarios, clearly ranked: (1) 3-lot subdivision [LEAD — GOOD]: buy $140k, demo 2 mobile homes, split into 3 × 14,520 SF lots, build 3 × 2,600 SF homes at $793k ARV each → $495,537 net profit, 20.8% investor margin, 98% cash-on-cash on $506k out-of-pocket. (2) 2-lot subdivision [MARGINAL]: only 2 lots if frontage constrains curb cuts → $238,817 net at 15.6% margin. (3) Single build [PASS]: keep 1 acre, build 2,800 SF at $280/SF → $77,143 net at 9.8% margin — do not pursue at $140k. The deal is worth a call TODAY. It has 40 days on market in a market where Holly Springs new-construction median is $804k. If sewer + R-8SF + 3-lot split confirm, offer $140k (at the ask). If only 2-lot subdivision is viable, the MAO at 20% margin drops to ~$82k — negotiate hard or pass.