| Line | Amount |
|---|---|
| Gross revenue — 6 units × $480K (Garrett area comps) | $2,880,000 |
| Land acquisition + closing (~2%) | ($408,000) |
| Construction — builder cost (9,000 SF × $111 builder grade) | ($999,000) |
| Home On builder margin (20% intro rate; standard 30%) | ($249,750) |
| Site development / infrastructure (6 lots × $35K cost, incl. 20% margin) | ($262,500) |
| Contingency (10% of construction, AT COST — typically returned if unused) | ($99,900) |
| Construction loan closing + carry (1.5% closing + 10% APR, 16 mo) | ($123,672) |
| Selling costs (~7%) — paid at sale closing, not out-of-pocket | ($201,600) |
| NET PROFIT TO INVESTOR | ~$535,578 · 18.6% margin · 84.5% cash-on-cash |
ARV support: Garrett area Durham median home $625,000 / avg $638,571 (May 2025); Southpoint townhomes $340–615K median $449K; new construction near Duke $429/SF (1012 Manor Way, $1.15M / 2,682 SF, 2025). Modeling $480K/unit ($320/SF) is conservative for new construction in the Garrett neighborhood. At $490K/unit the investor clears 20.1% margin. MAO $363K at $480K ARV; $444K at $500K ARV — current $400K ask sits between, making ARV verification the single most important gate before offer.
Strong, low-risk build opportunity. The full entitlement is done — Home On executes the build, the investor takes the profit. At $480K/unit (conservative $320/SF) the investor nets +$535,578 (18.6% margin, 84.5% CoC). Bumping even $10K/unit to $490K pushes margin to 20.1%. With $400K land basis, the MAO at base ARV is $363K — negotiate toward $375–385K if possible. At $500K/unit (achievable given $625K neighborhood median) the investor nets +$647,178 (21.6% margin, 102% CoC). Recommend: visit site, request site plan, pull 3 recent new-construction comps in 27707 before offer.