| Line | Amount |
|---|---|
| Gross revenue — 4 townhomes × $710,000 (402 Chavis Way comp Aug-2025) | $2,840,000 |
| Land acquisition + closing (~2%) | ($586,500) |
| Construction — builder cost (7,056 SF × $111/SF builder grade) | ($783,216) |
| Home On builder margin (20% intro rate; standard 30%) | ($195,804) |
| Site development / infrastructure — 4 lots, public sewer (incl. 20% margin) | ($150,000) |
| Soft costs — design, permits, survey (5% of construction, at cost) | ($39,161) |
| Contingency (10% of construction, AT COST — typically returned if unused) | ($78,322) |
| Construction loan closing + carry (1.5% + 10% APR, 14-month draw, avg half-drawn) | ($100,816) |
| Selling costs (~7%) — paid at sale closing, not out-of-pocket | ($198,800) |
| NET PROFIT TO INVESTOR | ~$707,382 · 24.9% margin · 126.5% cash-on-cash |
ARV support: 402 Chavis Way (27601, same Chavis Park area) SOLD Aug 25 2025 at $710,000 / 1,763 SF = $403/SF. 414 Chavis Way active at $724,900–$732,000 / 1,764 SF = $411–$415/SF. Both are "The Ware" development townhomes ~0.3 mi from subject. Modeled at $710K/unit (sold comp). MAO $684,000 — current ask $575K is $109K below MAO.
107 days on market with a $15K price cut signals a seller who needs to move. The Chavis Park townhome market has delivered $403–$415/SF on comparable product. At $710K/unit × 4 units = $2.84M revenue, the investor nets ~$707,382 (24.9% margin, 127% cash-on-cash on $559K out-of-pocket). MAO is $684K — the ask at $575K leaves strong cushion. If plans are permit-ready, this is a compress-the-timeline play: make an offer this week.