| Line | Amount |
|---|---|
| Gross revenue — 6 SFH × 2,000 SF × $250/SF (Holly Springs sold comps $233/SF) | $3,000,000 |
| Land acquisition + closing (~2%) | ($510,000) |
| Construction — builder cost (12,000 SF × $111/SF) | ($1,332,000) |
| Home On builder margin (20% intro rate) | ($333,000) |
| Site development — well + septic, 6 lots × $55K/lot (incl. 20% margin) | ($412,500) |
| Contingency (10% of construction, AT COST) | ($133,200) |
| Soft costs (5% of construction, AT COST) | ($66,600) |
| Construction loan closing (1.5% × $2,090,475) | ($31,357) |
| Carry — 10% APR × 50% drawn × 18 months | ($156,786) |
| Selling costs (~7%) — paid at sale closing, not out-of-pocket | ($210,000) |
| NET PROFIT TO INVESTOR | –$185,443 · –6.2% margin · –21% cash-on-cash → PASS |
Holly Springs sold comps: $233/SF median (Redfin Aug 2026). Even at generous $250/SF with 6 homes on septic, deal runs negative. Sewer pump station limitation confirmed by listing agent (prior rezone attempt revealed pump capacity issue). MAO = N/A — no viable path.
PASS — sewer pump capacity is a hard stop. The location adjacent to Peterson Station would be excellent for 10–15 townhomes, but without sewer the economics reverse. Pass unless Holly Springs commits to a pump station upgrade (monitor town capital improvement plan). Best case septic-only: –$185,443 loss (–6.2% margin).