| Line | Amount |
|---|---|
| Gross revenue — sale price (5 townhomes × $440K ARV comps) | $2,200,000 |
| Land acquisition + closing (~2%) | ($459,000) |
| Construction — builder cost (5 units × 1,600 SF × $111 builder grade) | ($888,000) |
| Home On builder margin (20% intro rate; standard 30%) | ($222,000) |
| Site development (5 units, public sewer, incl. 20% margin) | ($187,500) |
| Contingency + soft costs (15% of construction, AT COST — contingency typically returned if unused) | ($133,200) |
| Construction loan closing + carry (10% APR on draws, 15-month build) | ($109,839) |
| Selling costs (~7%) — paid at sale closing, not out-of-pocket | ($154,000) |
| NET PROFIT TO INVESTOR | ~$46,461 · 2.1% margin · 7.9% CoC — PASS at $450K ask |
ARV support: Fuquay-Varina median $518K, $215/SF overall (Aug 2026); 6681 River Rd new build listed $615K/2,518 SF ($244/SF). FV townhomes typically $220–$260/SF. Model uses $275/SF (optimistic). MAO for 20% investor margin at $275/SF with 5 townhomes: ~$90,000. Seller is asking $450,000 — a 5x premium to MAO. MONITOR: If price drops to $150K, re-run analysis at higher density.
Good bones — RMD zoning, public sewer, walkable downtown Fuquay-Varina — but priced at $803K/acre, far above what the FV townhome market ($220–$275/SF) can support. At the $450K ask, a 5-unit townhome project delivers 2.1% margin and returns just $46,461. MAO for 20% margin is $90,000 (vs $450K ask). PASS. Set a price-alert at $150K and re-run if it drops there.