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GOOD · 30% MARGIN $250K–$500K project
#2 · 4721 Edwards Drive, Apex, NC 27539
3.44 ac in Apex near Holly Springs | RR→MR entitlement play | 224 DOM motivated seller | MLS 10039682
List price$215,000 (priced from); 224 days on market — very motivated seller
Acreage3.44 acres
ZoningRR (Rural Residential) — current; MR (Mixed Residential) future land use per Apex comprehensive plan
MLS10039682
UtilitiesMunicipal water + sewer available — CURRENTLY for single-family residence only; multi-unit capacity MUST be verified with Apex Utilities before offer
StrategyBuy at/below ask, file Apex rezoning petition (RR → R-3 or R-5), subdivide into 5 lots, sell to builders at ~$110k each. Entitlement-only exit.
SubdivisionTurner Village area; soil study and stream/wetlands eval provided by seller
Out-of-pocket cash$344,300 all-cash (land $219,300 + entitlement $75,000 + sewer capacity est. $50,000)
FinancedAll-cash entitlement play — no construction loan. Optional: land loan 50% LTV reduces OOP to ~$237k
ModeledEntitlement-only exit; 5 approved lots sold at $110k each; 18–24 month hold timeline
Pro Forma
| Line | Amount |
|---|
| Gross revenue — 5 approved lots sold to builders ($110,000 each, Apex/Holly Springs market) | $550,000 |
| Land acquisition + closing (~2% of $215k) | ($219,300) |
| Entitlement costs — rezoning petition, planning attorney, civil engineer, traffic study (at cost) | ($75,000) |
| Sewer capacity work — confirm/extend connections for 5 units (estimate; VERIFY with Apex Utilities) | ($50,000) |
| Construction loan closing + carry | ($0 — all-cash entitlement hold; no construction loan) |
| Selling costs (~7%) — paid at closing, not out-of-pocket | ($38,500) |
| NET PROFIT TO INVESTOR (entitlement-only exit) | ~$167,200 · 30% margin · 49% cash-on-cash on $344,300 OOP |
Entitled lot comps: Apex near Holly Springs single-family lots with R-3/R-5 zoning $90k–$130k depending on size and utility access. Used $110k/lot for 5-lot model (conservative). Realistic lot yield: 5–8 lots after roads/buffers from 3.44 acres under R-5 zoning. Modeled 5 lots conservatively. MAO $271,000 — currently asking $215,000, a $56k cushion. Negotiate toward $190k–$200k given 224 DOM.
Diligence Gates
GO: MR (Mixed Residential) future land use in Apex comprehensive plan is the strongest entitlement signal — the Town has already said it wants more density here. At $215k ($62.5k/acre), land cost is very favorable for Apex-adjacent entitlement. Soil study and stream/wetlands evaluation already completed and provided by seller. Apex rezoning petition fee only $700 + $25/acre. 224 DOM = seller flexibility. Holly Springs High School zone supports land values.
VERIFY: (CRITICAL — must call Apex Utilities BEFORE OFFER) Confirm public sewer capacity for 5 residential connections at this address. If capacity exists or can be extended via Town program, deal clears; if it requires $200k+ force main, economics deteriorate. Schedule pre-application meeting with Apex Planning re: MR→R-3 or R-5 pathway, estimated timeline (typically 12–18 months in Apex), and any conditional requirements. Delineate stream/wetlands buffers to confirm net developable acreage. Verify no deed restrictions limiting density.
STOP: If sewer capacity for 5 units requires a force main costing >$100k — single-family-only value approaches current ask, no upside. If rezoning denied or requires unacceptable conditional zoning.
Verdict
The paper win thesis is compelling: spend $344k all-in, wait 18–24 months, sell 5 entitled Apex lots and net $167k (30% margin, 49% CoC). The entire bet hinges on two phone calls before you make an offer: (1) Apex Utilities — sewer capacity for 5 units, (2) Apex Planning — MR rezoning timeline. If both come back green, negotiate from $215k toward $190k–$200k (224 DOM gives you leverage), then file immediately. BUILD OPTION: Modeling all 5 homes adds only ~$15k net profit due to 24-month carry — sell the entitled land instead.