| Line | Amount |
|---|---|
| Gross revenue — sale price (2 homes × $636K ARV comps) | $1,272,000 |
| Land acquisition + closing (~2%) | ($153,000) |
| Construction — builder cost (2 homes × 2,400 SF × $111 builder grade) | ($532,800) |
| Home On builder margin (20% intro rate; standard 30%) | ($133,200) |
| Site development (2 infill lots, public sewer, incl. 20% margin) | ($75,000) |
| Contingency + soft costs (15% of construction, AT COST — contingency typically returned if unused) | ($79,920) |
| Construction loan closing + carry (10% APR on draws, 10-month build) | ($41,392) |
| Selling costs (~7%) — paid at sale closing, not out-of-pocket | ($89,040) |
| NET PROFIT TO INVESTOR | ~$167,648 · 13.2% margin · 58.2% CoC (base SFH) | Upside if GR5 allows townhomes: ~$395,023 · 20.9% margin · 101.1% CoC |
ARV support: Wake Forest median sold $467K, $191/SF overall (Nov 2025); downtown new-construction listing 514 E Juniper Ave at $679K/2,675 SF ($254/SF). Model uses $265/SF for 2,400 SF homes near Joyner Park. MAO as 2 SFH at $265/SF: $71,000 — well below $150K ask (deal does not pencil as SFH at ask). MAO as 4 townhomes at $295/SF: ~$265,000 — well above $150K ask (strong upside if density confirmed).
As two SFH infill lots in downtown Wake Forest with public sewer, the deal returns $167,648 (13.2% margin, 58.2% CoC) at $265/SF — MARGINAL. However, if one phone call to Wake Forest Planning confirms GR5 townhome density (4 units on 0.41 ac), the same $150,000 purchase delivers $395,023 profit — 20.9% margin and 101.1% cash-on-cash at $295/SF ARV. Low land cost, confirmed sewer, prime downtown location; the density question is the deal. Call the town planner before this 9-day-old listing is under contract.