| Line | Amount |
|---|---|
| Gross revenue — sale price ($450/SF × 3,200 SF; ARV comps Greenwood neighborhood) | $1,440,000 |
| Land acquisition + closing (~2%) | ($382,500) |
| Construction — builder cost (3,200 SF × $130 premium finish level) | ($416,000) |
| Home On builder margin (20% intro rate; standard 30%) | ($104,000) |
| Site development / infrastructure — public sewer/water connection (incl. 20% margin) | ($37,500) |
| Contingency (10% of construction, AT COST — typically returned to investor if unused) | ($41,600) |
| Construction loan closing + carry (10% APR on draws, 14-month build) | ($53,576) |
| Selling costs (~7%) — paid at sale closing, not out-of-pocket | ($100,800) |
| NET PROFIT TO INVESTOR | ~$304,024 · 21.1% margin · 99.8% cash-on-cash |
ARV support: 753 Old Mill Rd (same Greenwood neighborhood, Chapel Hill 27514), 4,018 SF 2024-rebuilt home, actively listed at $1,950,000 ($485/SF) — using conservative $450/SF here (7% discount to active comp). Market context: Chapel Hill new construction median listing $1M+; Greenwood is Chapel Hill's premier established neighborhood, 2 miles to UNC campus. MAO $390,100 at $450/SF — ask $375,000 is $15,100 below MAO. At comp-level $480/SF, MAO rises to $455,000 and investor margin jumps to 28%.
GREAT buy at $375,000 in Chapel Hill's premier Greenwood neighborhood — same street as a 2024-rebuilt comp listing at $1,950,000. Build 3,200 SF at premium finish ($130/SF builder cost): investor nets +$304,024 (21.1% margin, ~100% cash-on-cash) with $304,601 out of pocket. MAO is $390,100 at $450/SF — ask of $375,000 is $15,100 below MAO, giving cushion even at the conservative comp. If the nearby listing closes at or near $485/SF, returns jump to +$471,000 (28% margin). Two years on market with a $25k price cut = motivated seller. This is also a compelling build-own site for someone wanting a custom home in Chapel Hill at below-replacement cost. Recommended: offer at $360-375k, parallel survey and title work.