| Line | Amount |
|---|---|
| Gross revenue — sale price (comps: 1330 Eldon Cir $558/SF; 4 Chantilly $408/SF; target $475/SF × 3,000 SF) | $1,425,000 |
| Land acquisition + closing (~2%) | ($433,500) |
| Construction — builder cost (3,000 SF × $130 premium finish) | ($390,000) |
| Home On builder margin (20% intro rate; standard 30%) | ($97,500) |
| Soft costs — design/permits/survey (5% of construction, at cost) | ($19,500) |
| Site development / infrastructure — utility connection, infill (incl. 20% margin) | ($31,250) |
| Contingency (10% of construction, AT COST — typically returned if unused) | ($39,000) |
| Construction loan closing + carry (10% APR on draws, 12-month build) | ($51,245) |
| Selling costs (~7%) — paid at sale closing, not out-of-pocket | ($99,750) |
| NET PROFIT TO INVESTOR | ~$263,255 · 18.5% margin · 94.5% cash-on-cash |
ARV support: 1330 Eldon Circle, Forest Hills (new construction, Homes by Dickerson, 2026) — $1,345,000 / 2,412 SF = $558/SF. 4 Chantilly Place (new, Forest Hills, completing May 2026) — ~$408/SF on 4,538 SF. Modeled at $475/SF ($1,425,000) for a 3,000 SF premium build — conservative. Deal reaches 20% margin at $490/SF ARV ($1,470,000 revenue). MAO $404,000 at $475/SF target — current ask is $21,300 above MAO (5.3% gap). Negotiate toward $405–415K; seller may respond given new listing. Eldon Circle comp at $558/SF provides ample upside headroom.
A legitimate new construction infill opportunity in one of Durham's hardest-to-enter neighborhoods. At list price, the investor nets +$263,255 (18.5% margin, 94.5% cash-on-cash) on a conservative $475/SF ARV — and the deal clears 20% margin at $490/SF, which is well within range given Eldon Circle sold at $558/SF in 2026. MAO is $404K vs. $425K ask — negotiate to $405–415K if possible. Out-of-pocket is only $278,610 with $788K financed. Forest Hills lots are rare; this is a "buy now, negotiate later" situation. Walk the lot this week and confirm utilities/flood status.