| Line | Amount |
|---|---|
| Gross revenue — sale price (3,200 SF × $285/SF; community median sold $/SF) | $912,000 |
| Land acquisition + closing (~2%) | ($152,439) |
| Construction — builder cost (3,200 SF × $111 builder grade) | ($355,200) |
| Home On builder margin (20% intro rate; standard 30%) | ($88,800) |
| Site development / infrastructure — public sewer (incl. 20% margin) | ($37,500) |
| Contingency (10% of construction, AT COST — typically returned if unused) | ($44,400) |
| Construction loan closing + carry (10% APR on draws, 12-mo build) | ($35,984) |
| Selling costs (~7%) — paid at sale closing, not out-of-pocket | ($63,840) |
| NET PROFIT TO INVESTOR | ~$133,837 · 14.7% margin · 83% cash-on-cash |
ARV support: The Preserve at Jordan Lake — Redfin/Neighborhoods.com median sale $/SF $256–$285; median home sale ~$940K (trailing 12 months); 7 sales in May 2026 (active market). Modeled at $285/SF (upper documented range). MAO ~$104,000 — ask $149,450 is 43% above MAO, confirming MARGINAL grade for build-invest. Build-own angle: $714K all-in to own a $912K+ resort-community home — instant 22% equity on cost.
MARGINAL for build-invest (14.7% margin, below 20% target), but COMPELLING for build-own. An investor-owner building their primary home here spends $714K all-in to create a $912K home in a resort golf community with confirmed public sewer — instant $198K equity on cost. For pure investment: net $133,837 on $160,723 OOP (83% cash-on-cash) — the return on cash is strong even though the margin % is under target. Consider negotiating to ~$104K (MAO) if lot has sat. At $285/SF this deal pays; watch for the comp ceiling — Preserve avg is $285/SF but some sales reach $300+/SF, which would push margin above 20%.