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GOOD · 21.2% MARGIN $1M–$5M project
#3 · 4830 Optimist Farm Rd, Holly Springs 27540
12.43-ac MXR tract near I-540 · Holly Springs · MLS 10126374
List price$750,000 (MLS data from Dec 2025 — VERIFY current active status before proceeding)
Acreage12.43 acres (rolling topography, mature trees, flowing creek on property)
MLS10126374 (listed by Seagate NC LLC / Louis Ligon Gerald; last data update Dec 4, 2025)
ZoningMXR — Neighborhood Mixed-Use Residential (Holly Springs); allows detached & attached dwellings, small/large-scale apartments, limited commercial
UtilitiesPublic water + public sewer listed as available — subject to confirmation with Town of Holly Springs
LocationNear Sunset Lake Rd / Optimist Farm Rd intersection, Holly Springs — minutes from I-540, RTP, Cary, Fuquay-Varina
StrategyEntitlement: clear MXR plan for 25 townhome/SF lots, get plat approved, sell lots at $125k each (conservative)
Out-of-pocket cash$796,908 (equity + closings + 15-mo carry)
Financed$1,590,938 development loan (~75% of project)
ModeledLot-sale: 25 lots × $125,000; assumes 8.5 developable ac after creek buffer; $35k/lot infra cost
Pro Forma
| Line | Amount |
|---|
| Gross revenue — 25 approved platted lots × $125,000 (Holly Springs, conservative basis) | $3,125,000 |
| Land acquisition + closing (~2%) | ($765,000) |
| Entitlement — survey, civil engineering, plat approval (at cost, no HO markup) | ($175,000) |
| Subdivision infrastructure cost (25 lots × $35,000/lot cost) | ($875,000) |
| Home On infrastructure margin (20% intro rate; standard 30%) | ($218,750) |
| Contingency (10% of infrastructure cost, AT COST — typically returned if unused) | ($87,500) |
| Development loan closing + carry (1.5% closing + 10% APR, 15 mos half-drawn) | ($123,298) |
| Selling costs (~7%) — paid at lot closings, not out-of-pocket | ($218,750) |
| NET PROFIT TO INVESTOR | ~$661,702 · 21.2% margin · 83.0% cash-on-cash |
Lot-value support: Holly Springs median new-home listing ~$500–600k (27540); production builders pay $125–175k for approved townhome lots in the I-540 corridor. $125k/lot modeled as floor; at $150k/lot profit = $1,073,912 (32.5% margin). Land at $60k/acre is cheap for MXR-zoned land this close to I-540. MAO $786,000 — $36,000 cushion above ask at $125k/lot model. CAUTION: listing data is 10 months old — confirm availability immediately.
Diligence Gates
GO (conditional): MXR zoning allows all residential types including townhomes and apartments; land price at $60k/acre in Holly Springs near I-540 is very cheap for this zoning; confirmed listing at $750k.
VERIFY: CALL LISTING AGENT FIRST (Seagate NC LLC) — listing last updated Dec 2025, may be sold/under contract; confirm public sewer connection point with Town of Holly Springs (listed as available but "subject to confirmation"); commission stream buffer survey on the flowing creek (Neuse tributary or unnamed stream — 50-ft buffer each side if subject to Riparian Buffer Rules; map creek corridor to confirm developable acreage; 12.43 gross may net 8–9 developable ac after buffers); wetlands delineation; tree survey for grading cost; confirm MXR allows 3-4 units/acre townhome density for 25-lot plan.
STOP: If creek triggers 50-ft undisturbed Neuse buffer on both banks and reduces net lots below 18; if sewer is not available within 400 ft; if listing is under contract.
Verdict
GOOD (verify first) — 12.43 acres of MXR-zoned land at $60k/acre near I-540 in Holly Springs is cheap by any measure. Entitlement path: get 25-lot plat approved and sell to production builders. At $125k/lot (conservative), investor nets $661,702 (21.2% margin, 83% C-o-C). Upside at $150k/lot: $1.07M profit (32.5% margin). MAO is $786k vs. $750k ask — good cushion. Key unknowns: listing status (call agent immediately), sewer confirmation, and creek buffer extent. Do not go under contract without confirming all three. If all verify, this is the highest-upside lot in today's scan.