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GOOD · 56% MARGIN Under $250K project
#1 · 5828 Old Smithfield Rd (access at 5814), Apex, NC 27539
1.215-ac flag lot w/ public sewer · Apex 27539 · MLS 10133688 · $165K
List price$165,000 (active MLS 10133688; on market since Nov 17, 2025 — 10 months)
Acreage1.215 ac flag lot (some sources report 2.08 ac total incl. access easement — verify via Wake County GIS)
MLS10133688 — Active, Apex NC 27539
ZoningRR (Rural Residential) · Future Land Use: Mix-Use per Town of Apex Comprehensive Plan
UtilitiesPUBLIC SEWER at property · Public water along Old Smithfield Rd · Electricity/cable available · Abandoned mobile home on site (demo ~$8K est.)
StrategyPRIMARY: Entitlement — pursue Mix-Use rezoning, resell commercial-entitled land. FALLBACK: Build one new 2,600 SF home on public sewer (5.2% investor margin at $265/SF ARV — marginal).
Out-of-pocket cash$235,050 (land $165K + $3,300 closing + $35K entitlement costs + $7K contingency + $24,750 carry · all equity, no construction loan for land hold)
FinancedN/A — land hold strategy; no construction loan in entitlement scenario
ModeledEntitlement: 1.215 ac × 43,560 SF/ac × $12/SF conservative commercial (unverified — MUST validate with commercial broker before offer) · Fallback single build: 2,600 SF × $265/SF new construction ARV = $689K (Apex new construction est. above $241/SF median)
Days on market~314 days (10+ months) — has not attracted a buyer at $165K; verify there is no title, access, or environmental issue before proceeding
Pro Forma
| Line | Amount |
|---|
| Gross revenue — entitled land resale (1.215 ac × 43,560 SF/ac × $12/SF Mix-Use, conservative est.) | $635,000 |
| Land acquisition + closing (~2%) | ($168,300) |
| Entitlement costs — survey, attorney, planning consultant (AT COST, no Home On margin) | ($35,000) |
| Home On entitlement coordination (N/A — no construction scope in this scenario) | $0 |
| Rezoning contingency reserve (20% of entitlement costs, AT COST — returned if unused) | ($7,000) |
| Carry (10% APR × $165K land × 18 months avg hold through rezoning) | ($24,750) |
| Selling costs (~7%) — paid at closing, not out-of-pocket | ($44,450) |
| NET PROFIT (ENTITLEMENT SCENARIO) | ~$355,500 · 56% margin · 151% cash-on-cash · FALLBACK single build nets ~$35,884 (5.2% margin / 24% CoC) — marginal |
Entitlement ARV: No hard sold comps for MU-rezoned residential lots in the 27539 corridor — $12/SF used as conservative anchor (commercial land in Apex active market: $10–25/SF range per market observation). Fallback build ARV: Apex 6-mo median $241/SF (704 sales, Resideline); new construction est. $260–$270/SF premium. Using $265/SF × 2,600 SF = $689,000 for fallback. MAO for fallback single build at 20% investor margin: $66,384 (vs. $165K asking — does NOT clear; the single-build only makes sense if land is purchased significantly below ask, OR as a dual-purpose build-own for an end-buyer who values the public sewer and the entitlement optionality).
Diligence Gates
GO: Public sewer confirmed at property; Mix-Use future land use in town comp plan; public water available; Apex 27539 active new construction market.
VERIFY: (1) Exact acreage — Wake County GIS parcel data vs. MLS discrepancy (1.215 vs. 2.08 ac). (2) Title — flag lot access easement from Baker's Alley must convey clean; confirm no disputes or encumbrances. (3) Pull Apex planning staff's informal read on MU rezoning petition before contracting — comp plan designation is supportive but not a guarantee. (4) Confirm abandoned mobile home can be demolish-permitted quickly and no hazmat. (5) Commercial broker land comp analysis for Apex 27539 MU-zoned land values. (6) Reason for 10+ months on market — contact listing agent to understand buyer objections.
STOP: If title or access easement has defects · If planning staff signals rezoning is unlikely · If parcel is in FEMA floodplain or has wetland encumbrance · If well-water-only (confirm water main location and tap cost).
Verdict
At $165,000 with public sewer already stubbed at the parcel and a Mix-Use future land-use designation from Apex's own comp plan, this is a low-capital ticket into the commercial rezoning pipeline in one of the Triangle's strongest growth corridors. If a MU rezoning clears at $12/SF (conservative), the investor nets ~$355,500 on a $235K all-in position — 56% margin, 151% cash-on-cash. Even at a more modest $8/SF commercial value ($423K resale), the profit is ~$143K on $235K invested (61% CoC). The 10-month market time is the chief red flag and must be investigated before offering; confirm the flag-lot access and title are clean. As a fallback if rezoning fails, a single 2,600 SF new-construction build yields only ~$35,884 profit (5.2% margin, 24% CoC) — marginal for a pure build investor, but acceptable for an owner-builder or land-banker who values the public sewer and the optionality. Do NOT offer above $66K if underwriting as a single-home-build-only investment at 20% margin target.