| Line | Amount |
|---|---|
| Gross revenue — 2 homes × 1,800 SF × $270/SF (Wake Forest new construction avg) | $972,000 |
| Land acquisition + closing (~2%) — 620 & 626 Brewer Ave, 2 lots, 0.40 ac | ($153,000) |
| Construction — builder cost (3,600 SF × $111 builder grade) | ($399,600) |
| Home On builder margin (20% intro rate; standard 30%) | ($99,900) |
| Site development — 2× public utility hookups (incl. 20% margin) | ($75,000) |
| Soft costs — design/permits/survey (5% of builder cost, AT COST) | ($19,980) |
| Contingency (10% of builder cost, AT COST — typically returned if unused) | ($39,960) |
| Construction loan closing + carry (10% APR on draws, ~9 months) | ($31,006) |
| Selling costs (~7%) — paid at sale closing, not out-of-pocket | ($68,040) |
| NET PROFIT TO INVESTOR | ~$85,514 · 8.8% margin · 36.7% cash-on-cash |
ARV comps — Wake Forest new construction: avg $243/SF (June 2026 Resideline); 305 E Perry Ave 1,660 SF/$400k ($241/SF); 724 Winton Way Unit 542 downtown WF 1,975 SF/$372k ($188/SF). Modeled at $270/SF conservative. At $290/SF: $152,474 net / 14.6% margin. At $310/SF: $236,174 net / 20.8% margin (MAO at $310/SF = $145,622 — $4,378 below $150k ask). MAO at $270/SF = $46,624.
MARGINAL — at $150k asking, the deal requires $310+/SF downtown Wake Forest comps to hit 20% investor margin; the MAO for 20% at conservative $270/SF is only $46,624. HOWEVER: this is a notably fresh listing (9 DOM) with confirmed public sewer and two platted city lots near downtown Wake Forest — if the list price drops to $90-$100k, or if nearby custom infill comps confirm $300+/SF, this flips to GOOD. Best suited as a build-own play for a buyer constructing their own home (no Home On builder margin = ~$99,900 savings → effectively a $270/SF build-own with $232k out-of-pocket for two new downtown homes). Watch for price reduction.