| Line | Amount |
|---|---|
| Gross revenue — sale price (2,400 SF × $444/SF ITB new-const. comp) | $1,065,600 |
| Land acquisition + closing (~2%) | ($302,940) |
| Construction — builder cost (2,400 SF × $130/SF nice finish) | ($312,000) |
| Home On builder margin (20% intro rate; standard 30%) | ($78,000) |
| Site development / infrastructure (single lot, public utilities, $30K cost + 20% margin) | ($37,500) |
| Contingency + soft costs (15% of construction AT COST — contingency ~10% typically returned if unused) | ($46,800) |
| Construction loan closing + carry (10% APR, 14-mo build, avg half-drawn) | ($42,748) |
| Selling costs (~7%) — paid at sale closing, not out-of-pocket | ($74,592) |
| NET PROFIT TO INVESTOR | ~$171,020 · 16.1% margin · 67.6% cash-on-cash |
ITB Raleigh new-construction comp (ACTIVE listing, not yet closed): 720 Oakwood Ave Unit 102, Raleigh 27601 (same zip, new duet/townhome) listed $975,000 / 2,195 SF = $444/SF (2026). At $500/SF (premium downtown finish): revenue $1,200,000, net $296,012, margin 24.7% GREAT. MAO at $444/SF = $256,000 (14% below $297K ask — negotiate with 276-DOM seller); MAO at $500/SF = ~$360,000 (well above current ask — deal is GOOD or GREAT if closed comps clear $500/SF). Agent MLS pull for 2026 closed new-construction sales in 27601 / Mordecai / Oakwood required to confirm.
ITB Raleigh infill with a motivated seller after 276 days at ask. At $297K, the investor nets +$171K (16.1% margin, 67.6% cash-on-cash) using the nearest active comp ($444/SF at 720 Oakwood Ave). MARGINAL at full ask — but at negotiated $256K (MAO), it clears 20% margin; if the neighborhood clears $500/SF for premium downtown finishes, it is GREAT at current ask. The real opportunity may be to combine this lot with the neighboring lot if available — two adjacent downtown lots could support a duplex/two-unit build and meaningfully improve per-unit economics. Lowest out-of-pocket in the batch at ~$253K; suitable for an investor testing the ITB market before committing to larger deals. Critical first step: call CoR Planning to confirm the non-conforming lot is permittable. If yes, call the Compass listing agent and open a negotiation at or below $256K.