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PASS · 2.9% margin · 12.2% CoC as build-invest — PASS; build-own saves $4k-$286k vs. buying finished MARGIN $500K–$1M project
#3 · 4900 N Hills Dr, Raleigh, NC 27612
0.29-ac raw lot / North Hills Estates / no demo / public sewer / MLS 10172642
List price$499,000 (Active since June 4, 2026 — MLS 10172642)
Acreage0.29 acres (12,632 SF raw vacant lot — no demo needed)
MLS10172642 — North Hills Estates, Raleigh 27612
ZoningR-4; public water and sewer; corner lot; 10,000 SF minimum lot size = single-home site only
UtilitiesPublic water and sewer confirmed; electricity available; paved road frontage; septic also available
StrategyBuild-own: 2,600 SF custom home, all-in ~$984k vs. buying comparable new construction $988k-$1.27M. Build-invest produces only 2.9% margin — PASS.
Comparable salesNorth Hills: 6512 Burnette Flower Way (27612) $383/SF new const (3,364 SF); 1005 Temple St (27609) $486/SF (3,580 SF). Neighborhood active median ~$345/SF.
Out-of-pocket cash$258,946 (equity $207,315 + land closing $9,980 + loan closing $11,025 + carry $30,626)
Financed$735,025 construction loan (~78% of $942,340 project)
Modeled2,600 SF × $111/SF builder grade; 20% Home On intro margin; 10-month build
Margin
2.9% margin · 12.2% CoC as build-invest — PASS; build-own saves $4k-$286k vs. buying finished
Pro Forma
| Line | Amount |
|---|
| Gross revenue — 2,600 SF × $420/SF (North Hills new const estimate) | $1,092,000 |
| Land acquisition ($499,000) + closing (2%) | ($508,980) |
| Construction — builder cost (2,600 SF × $111 builder grade) | ($288,600) |
| Home On builder margin (20% intro rate; standard 30%) | ($72,150) |
| Site development (single lot, public sewer, incl. 20% margin) | ($43,750) |
| Contingency (10% of construction cost, AT COST — typically returned if unused) | ($28,860) |
| Construction loan closing + carry (10% APR, 10-month cycle) | ($41,651) |
| Selling costs (~7%) — paid at sale closing, not out-of-pocket | ($76,440) |
| NET PROFIT TO INVESTOR (build-invest) | ~$31,569 · 2.9% margin · 12.2% CoC — PASS
Build-own all-in: ~$983,991 vs. buying comparable new construction $988k-$1.27M (saves up to $286k with full customization) |
ARV support: North Hills active new const $383-486/SF; model uses $420/SF for 2,600 SF = $1.092M. Even at $450/SF investor margin is only 8.9%. MAO $371,657 at $450/SF — lot must fall 26% from ask before a 20% flip margin appears. PASS for investors.
Diligence Gates
GO (build-own): Prime North Hills location; greenway views; public sewer; no demo; strong long-term floor.
VERIFY: R-4 setbacks and buildable envelope; confirm no HOA or architectural review; deed restrictions.
STOP (build-invest): Current pricing — wait for price cut to ~$372k.
Verdict
PASS for investment. MAO is $372k; lot needs to fall 26% before a 20% flip margin appears. As a build-own play this is legitimate: all-in ~$984k for a custom 2,600 SF home in one of Raleigh's premier neighborhoods, at or below the cost of buying finished comparable new construction ($988k-$1.27M). Out-of-pocket during build is only $259k. Compare alongside 5605 N Hills Dr (teardown next door, $76k more land, demo headache, worse math).