| Line | Amount |
|---|---|
| Gross revenue — 20 homes × 2,200 SF × $285/SF (conservative new-build) | $12,540,000 |
| Home On builder services — construction incl. 20% intro margin | ($6,097,500) |
| Site development — 20 lots, public sewer connected | ($750,000) |
| Subdivision infrastructure — 19 new lots | ($831,250) |
| Construction contingency — 10% at cost (typically returned if unused) | ($488,400) |
| Land acquisition | ($500,000) |
| Land closing — 2% | ($10,000) |
| Construction loan closing — 1.5% of $6.76M | ($101,406) |
| Carry interest — 10% APR, avg 50% drawn, 18 months | ($507,028) |
| Selling costs — 7% of sale price (paid at close, not out-of-pocket) | ($877,800) |
| NET PROFIT TO INVESTOR | ~$2,377,000 · 19% margin · 94% total equity return | GREAT at $295/SF: ~$2,786,000 · 21.5% margin |
ARV support: 1813 Turning Plow Ct, Holly Springs (Aug 2025, 2,080 SF, $553K, $266/SF sold); 5508 Lake Edge Dr (Apr 2025, 2,769 SF, $825K, $298/SF sold). Holly Springs new-build premium $282/SF per active listing data (Raleigh Realty Sept 2026). Pro forma uses conservative $285/SF. MAO = $371K at $285/SF (20% target) — paying $500K yields 19% GOOD. MAO = $721K at $295/SF (GREAT threshold) — $500K ask is $221K below GREAT MAO = strong cushion.
This 7.87-acre Holly Springs ETJ parcel is the strongest land opportunity on the scan. City sewer at the perimeter is the deal-maker; the $100K price cut signals a motivated seller after 60+ days on market. At $285/SF conservative, 19% margin pencils cleanly. At $295/SF market comps, this becomes a GREAT deal with a $221K MAO cushion. Tour the site immediately, verify the sewer stub distance and connection feasibility, then submit a conditional offer at $460-480K to lock it up with negotiating room.