| Line | Amount |
|---|---|
| Gross revenue — 8 townhomes × $470,000 (Durham avg sale $487K; new const. premium near RDU) | $3,760,000 |
| Land acquisition + closing (~2%) | ($458,898) |
| Construction — builder cost (12,400 SF × $111 builder grade) | ($1,376,400) |
| Home On builder margin (20% intro rate; standard 30%) | ($344,100) |
| Site development / infrastructure, attached adj. $35K/unit (incl. 20% margin) | ($350,000) |
| Soft costs (5% of const., at cost) + contingency (10% of const.+site, AT COST — typically returned if unused) | ($234,460) |
| Construction loan closing + carry (10% APR on draws, 14-month build) | ($152,012) |
| Selling costs (~7%) — paid at sale closing, not out-of-pocket | ($263,200) |
| NET PROFIT TO INVESTOR | ~$580,930 · 15.4% margin · 68.2% cash-on-cash |
ARV support: Durham overall average sale $487,396 (Steadily 2026); Carpenter-Fletcher near 540/40/RDU commands commuter premium. Existing "Townes on Leesville" resale median $341K — new construction premium of $130K+ is well-supported. At $470K/unit ($303/SF for 1,550 SF) deal grades GOOD (15.4% margin). At $510K/unit margin reaches 21.5% GREAT. MAO for 20% margin = $282,184 (vs. $449,900 list) — significant gap; buyer targeting 20% must negotiate hard or achieve $510K+ ARV. GOOD grade is achievable at list price.
Pre-approved 8-townhome site in the Carpenter-Fletcher corridor — RDU 5 minutes, I-540/40 interchange nearby, strong rental and owner demand. At ask + $470K ARV, investor nets $580,930 (15.4% margin, 68% CoC). For 20% margin, either negotiate to ~$282K or target $510K ARV. "Building plans completed" is the real asset — it eliminates months of design risk. Secondary exit: strong rental demand near RDU makes a build-hold scenario viable if market softens at time of completion. Offer $380K–$420K contingent on confirming permit-ready status.