| Line | Amount |
|---|---|
| Gross revenue — 2 units × $360,000 ($300/SF × 1,200 SF each · downtown FV TCR location) | $720,000 |
| Land acquisition + closing (~2%) | ($122,400) |
| Construction — builder cost (2,400 SF × $111 builder grade) | ($266,400) |
| Home On builder margin (20% intro rate; standard 30%) | ($66,600) |
| Site development (final utility connections and site prep, incl. 20% margin) | ($25,000) |
| Contingency (10% of construction, AT COST — typically returned if unused) | ($26,640) |
| Construction loan closing + carry (1.5% closing + 10% APR on 9-mo draws) | ($19,965) |
| Selling costs (~7%) — paid at sale closing, not out-of-pocket | ($50,400) |
| NET PROFIT TO INVESTOR | ~$142,595 · 19.8% margin · 97.2% cash-on-cash |
ARV support: Fuquay-Varina new construction SF comps — 812 Shiloh Hills Dr sold 5/2026 $990K/3,754 SF = $263.55/SF; 3812 Fairway View Dr sold $810K/3,109 SF = $260.54/SF (both detached SF). Duplex modeled at $300/SF for downtown/TCR premium over suburban detached; break-even for 20% margin = $305/SF at list price; at $310/SF margin = 22.2%. MAO to hit 20% at $300/SF = $97,249 (offer $95K–$97K). UNVERIFIED — no confirmed sold comps for new attached/duplex/condo product in FV town center. RISK: FV detached new construction trades at $260–263/SF; attached may not reach $300/SF without premium location evidence.
Opportunistic small-capital play driven by a motivated seller (40% price cut, 45 days on market). At list price $120,000 and $300/SF ARV, the investor nets +$142,595 (19.8% margin, 97.2% C-o-C) — just under the 20% hurdle. Counter-offering at $95,000–$97,000 clears 20% at $300/SF. At $310/SF (achievable if FV downtown premium is confirmed), the deal works at list price with 22.2% margin. Rental hold is cash-flow negative at current rates but improves materially if refinanced at 6.5% or below. Approved plans and all utility work already done reduce execution risk significantly. Recommend pulling comparable attached sales and a site walkthrough before deciding on offer price. Total out-of-pocket under $150K keeps this accessible for smaller capital pools.