| Line | Amount |
|---|---|
| Gross revenue — 14 homes × $1,110,000 ($370/SF × 3,000 SF, new custom construction) | $15,540,000 |
| Land acquisition + closing (~2%) | ($2,601,000) |
| Construction — builder cost (14 homes · 42,000 SF × $111 builder grade) | ($4,662,000) |
| Home On builder margin (20% intro rate; standard 30%) | ($1,165,500) |
| Site development / infrastructure (14 lots public utilities + 13-lot roads, incl. 20% margin) | ($1,093,750) |
| Soft costs — design/permits/survey (5% of construction, at cost) | ($233,100) |
| Contingency (10% of construction, AT COST — typically returned if unused) | ($466,200) |
| Construction loan closing + carry (1.5% closing + 10% APR on 24-mo draws) | ($881,608) |
| Selling costs (~7%) — paid at sale closing, not out-of-pocket | ($1,087,800) |
| NET PROFIT TO INVESTOR | ~$3,349,042 · 21.5% margin · 97.4% cash-on-cash |
ARV support: 1003 Tallyho Trail (adjacent Fox Meadow) sold 3/27/2026 $725,000/2,461 SF = $294.60/SF; 8107 Kit Lane CH sold 11/2024 $708,800/2,287 SF = $309.90/SF; Fox Meadow 5/2025 $578,000/1,820 SF = $317.58/SF. New custom 3,000 SF homes on 1-ac lots modeled at $370/SF (16% premium over recent existing comps — standard for new custom construction); break-even ARV = $362/SF. MAO $2,767,402 at $370/SF (ask $2,550,000 is $217,402 below MAO — solid cushion). UNVERIFIED — confirm against new construction sold comps in Carrboro/CH before offer.
Best development play in this scan. The price is essentially at or below the MAO for a straightforward 14-lot, 1-acre-minimum build-out: at the $370/SF ARV target the investor nets +$3,349,042 (21.5% margin, 97.4% cash-on-cash). Conservative case at $350/SF yields 17.5% margin — near-miss on the 20% hurdle that could be fixed with a modest price negotiation to ~$2.37M. The real prize is entitlement: Carrboro is rewriting its UDO (adoption Winter 2026), and a public sewer main now traverses this property — the strongest argument possible for requesting higher density. If rezoned to R-15 (15,000 SF lots), yield climbs to ~40 lots and the deal becomes exceptional. Home On is a licensed NC GC (L-103184) — this is a natural build-invest fit. Recommend site visit + Carrboro Planning meeting before offer. Ask price $2,550,000; negotiate toward $2.37M ($2.37M is the MAO for 20% margin at conservative $350/SF).