| Line | Amount |
|---|---|
| Gross revenue — sale price (8 townhomes × $355,000 — Beazer Townes on Leesville active new-construction comps) | $2,840,000 |
| Land acquisition + closing (~2%) | ($458,898) |
| Construction — builder cost (1,640 SF × $111 builder grade × 8 units) | ($1,456,320) |
| Home On builder margin (20% intro rate; standard 30%) | ($364,080) |
| Site development — attached townhomes on 0.71 ac (grading, drives, utilities, landscaping, $350K at cost), incl. 20% margin | ($437,500) |
| Contingency (10% of construction cost $1,456,320, AT COST — typically returned if unused) | ($145,632) |
| Construction loan closing (1.5% × $2,140,074) + carry (10% APR × 50% drawn × 18 months) | ($192,607) |
| Selling costs (~7%) — paid at sale closing, not out-of-pocket | ($198,800) |
| NET PROFIT TO INVESTOR | ~($413,837) · −15% margin · −45% cash-on-cash |
Comparable new construction 0.1 mi away: Beazer Homes Townes on Leesville (active 2026) lists 3BR/3BA at $326,000–$357,000 for 1,614–1,664 SF. Townes at Brier Creek Crossing (2015 stock): $390K median sale, $226/SF. ARV of $355K used for new 3BR/3BA 1,640 SF unit is generous given the direct Beazer competition. MAO for land at 20% investor target margin: −$330,332 (construction costs + Home On 20% margin alone exceed available revenue after profit target — no positive land price achieves 20% return here). Even at 0% investor margin, MAO ≈ −$27,000. The land would need to be sold to the investor for negative dollars (seller pays investor) for numbers to pencil.
Hard pass at $449,900. Beazer is actively closing new 3BR/3BA townhomes on this road at $326K–$357K, establishing a firm comp ceiling. For 8 units to generate any positive investor return here, each would need to sell at $475K+ — a 33% premium over Beazer's active pricing with no differentiation rationale. The approvals and plans are real value (seller paid $75K in 2020 and has invested in entitlements), but they're priced at well beyond what the revenue supports. Pass unless ask drops below $100K.