| Line | Amount |
|---|---|
| Gross revenue — 6 townhomes × $520,000 (27707 new const. ~$302–$325/SF; Duke-proximity premium) | $3,120,000 |
| Land acquisition + closing (~2%) | ($408,000) |
| Construction — builder cost (9,600 SF × $111 builder grade) | ($1,065,600) |
| Home On builder margin (20% intro rate; standard 30%) | ($266,400) |
| Site development / infrastructure, attached adj. $35K/unit (incl. 20% margin) | ($262,500) |
| Soft costs (5% of const., at cost) + contingency (10% of const.+site, AT COST — typically returned if unused) | ($180,840) |
| Construction loan closing + carry (10% APR on draws, 14-month build) | ($120,084) |
| Selling costs (~7%) — paid at sale closing, not out-of-pocket | ($218,400) |
| NET PROFIT TO INVESTOR | ~$598,176 · 19.2% margin · 88.8% cash-on-cash |
ARV support: Durham 27707 median $273/SF (up 9.4% YoY, Zillow 2026); one 2026 new construction in 27707 at $302/SF ($724,999 / 2,400 SF). Modeling $325/SF for 1,600 SF premium new townhomes near Duke (= $520K/unit). At $300/SF ($480K/unit) investor margin drops to ~8.6% (MARGINAL); at $340/SF ($544K/unit) deal becomes GREAT at 22.4%. MAO $374,682 — list $400,000 is only 6.3% above MAO, a realistic negotiation.
Best deal in this scan. A shovel-ready 6-townhome site near Duke in one of the Triangle's most education-driven demand corridors — approval already secured, plans in hand. At $400K asking + $520K/unit ARV, investor nets $598,176 (19.2% margin, 89% CoC). The MAO of $374,682 is only 6% below list; a single conversation with the seller could close that gap and push the deal to 20%+ GREAT. If ARV comes in at $300/SF (cautious scenario), margin drops to ~9% — verify the comp before committing. Offer $370K–$375K.