| Line | Amount |
|---|---|
| Gross revenue — 3 homes × 3,000 SF × $280/SF (conservative rural Wake County) | $2,520,000 |
| Home On builder services — construction incl. 20% intro margin | ($1,248,750) |
| Site development — 3 lots, well + septic (no public sewer assumed) | ($206,250) |
| Subdivision infrastructure — 2 new lots | ($87,500) |
| Construction contingency — 10% at cost | ($99,900) |
| Land acquisition | ($150,000) |
| Land closing — 2% | ($3,000) |
| Construction loan closing — 1.5% of $1.4M | ($20,971) |
| Carry interest — 10% APR, avg 50% drawn, 18 months | ($104,855) |
| Selling costs — 7% of sale price | ($176,400) |
| NET PROFIT TO INVESTOR | ~$422,000 · 17% margin (MARGINAL-GOOD) · 81% total equity return | GREAT at $305/SF with confirmed 3 lots: ~$632K · 23% margin |
ARV support: 1813 Turning Plow Ct, Holly Springs (Aug 2025, 2,080 SF, $553K, $266/SF). New-build premium: $282/SF Holly Springs average per listing data. At $280/SF (conservative rural R-30): 16.8% margin → GOOD territory. At $305/SF with 3 lots: 23% GREAT. MAO = $80K at $280/SF (paying above MAO yields 17% return). MAO = $241K at $305/SF — ask of $150K = $91K below GREAT MAO = strong cushion if comps hold. Sewer extension from Holly Glen corridor could reclassify as city lot play — verify Holly Springs public works.
At $150K this is the most compelling price-per-acre entry in the scan ($43K/ac in Wake County). At $280/SF conservative rural comps with 3 R-30 lots, 17% margin is solid GOOD territory. Upgrade path is clear: if Holly Springs sewer can extend to this parcel, the city-lot premium pushes $/SF above $295 and the deal becomes GREAT with a $91K MAO cushion. Brand-new listing with open house = act fast. Pull Wake County IMAPS and Holly Springs sewer availability map this week before competing offers arrive. Lowest cash threshold on the scan ($523K).