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MARGINAL · 3.7% build-own equity; negative investor flip MARGIN $1M–$5M project
#2 · 936 W Holly Springs Rd, Holly Springs, NC 27540
1.47 ac | MLS 10150554 | Public sewer/water/electric | $550,000 | No HOA
List price$550,000 (active, updated 07/18/2026)
Acreage1.47 ac (64,033 SF), surveyed and platted, ready for architect/builder
MLS#10150554 (Triangle MLS — cvrealtygroup.com)
ZoningHolly Springs residential — 1.47 ac, no HOA, no deed restrictions limiting vision (per listing). Confirm with Town of Holly Springs Planning.
UtilitiesPublic water, public sewer, and electricity available at the street (confirmed listing). 107 ft road frontage.
StrategyBuild-own primary — end-user builds 4,000–5,000 SF custom home. Investor flip requires $187k MAO vs. $550k ask; not viable without ARV well above market.
Out-of-pocket cash$392,146 (equity $331,625 + land closing $11,000 + loan closing $14,923 + carry $45,598) — build-own model, 4,000 SF / $130/SF builder cost
Financed$994,875 construction loan (~75% of $1,326,500 pre-financing project cost)
Modeled4,000 SF premium build-own at $130/SF builder cost, $345–360/SF ARV; Holly Springs custom home corridor where award-winning builders are delivering $814,000+ homes across the street
Gross revenue
$1,440,000 (4,000 SF × $360/SF — build-own model; see note)
Net profit
+$52,979 build-own equity (4,000 SF × $360/SF ARV); -$47,821 investor flip (after 7% selling costs)
Margin
3.7% build-own equity; negative investor flip
Max offer (20%)
$187,000 (investor flip) | ~$552,000 (build-own break-even at 4,000 SF / $340–360/SF)
Pro Forma
| Line | Amount |
|---|
| Gross revenue — 4,000 SF × $360/SF (build-own target ARV / resale reference) | $1,440,000 |
| Land acquisition + closing (~2%) — 1.47 ac, 936 W Holly Springs Rd | ($561,000) |
| Construction — builder cost (4,000 SF × $130/SF, premium builder-grade for Holly Springs) | ($520,000) |
| Home On builder margin (20% intro rate; standard 30%) | ($130,000) |
| Site development / infrastructure — 1 lot, public utilities at street (incl. 20% margin) | ($37,500) |
| Contingency (10% of construction, AT COST — typically returned if unused) | ($52,000) |
| Construction loan closing (1.5% × $994,875) + carry (10% APR on draws, 11 months) | ($60,521) |
| Selling costs (~7%) — paid at sale closing if sold; $0 if retained as primary home | ($100,800) |
| NET PROFIT (build-own, retain) | +$52,979 equity day-1 at $360/SF · ~4% · 13.5% cash-on-equity | INVESTOR FLIP: ($47,821) — does not clear 20% |
Comps: 113 Dunton St, Holly Springs — $875,000 / 2,817 SF (built 2025) = $310/SF (hollyspringsupdate.com). Holly Springs Aug 2026 median sold $/SF: $233–$238 (blueorchidrealty.com). New construction listing median Holly Springs: $873,000 (Raleigh Realty). Listing states award-winning builders constructing custom homes $814,000+ directly across the street. Applied $360/SF for a 4,000 SF premium custom (above Dunton St comp at $310/SF but justified by larger lot, custom finishes, no HOA). Investor flip MAO: $187,000 — lot is $363,000 over flip MAO. Build-own MAO: ~$552,000 — lot is essentially at-cost for someone building 4,000 SF at $340–360/SF.
Diligence Gates
GO: Public sewer/water/electric confirmed at street. Surveyed, platted, ready to build. No HOA. Active listing updated July 2026. Custom homes $814,000+ being built across the street. Holly Springs is the Triangle's most supply-constrained sub-market with ~0.5 months inventory.
VERIFY: (1) Confirm Holly Springs Town zoning setbacks, impervious cover limits, and any tree preservation ordinance. (2) Confirm sewer capacity allocation / tap fee with Holly Springs Utilities. (3) Clarify road: W Holly Springs Rd is US-55 corridor — confirm traffic noise, setback requirements. (4) Check FEMA flood zone (unlikely an issue on a 1.47-ac platted lot but confirm).
STOP: If building program < 3,500 SF or target ARV < $340/SF — the land cost makes the numbers negative. If zoning setbacks prohibit the planned footprint on 1.47 ac. For any investor seeking a build-to-sell strategy: walk away at $550k ask; MAO is $187,000.
Verdict
This lot is not an investor flip at $550,000 — the MAO for a standard build-to-sell is ~$187,000, making this $363,000 over the investor threshold. However, for the right end-user — someone who wants a 4,000–5,000 SF custom home on 1.47 private acres in Holly Springs with no HOA and public sewer — this lot is priced at or near break-even (day-1 equity ranges from near-zero to +$52,979 depending on ARV). The out-of-pocket is ~$392,000 for a home that appraises at $1.4–1.5M on completion. Refer this to any client wanting to build their own home in a premium South Wake location. If the right buyer is a GC or self-build who can reduce builder cost below $111/SF, the equity picture improves materially.