| Line | Amount |
|---|---|
| Gross revenue — sale price (3 townhomes × $440,000 comps) | $1,320,000 |
| Land acquisition + closing (~2%) | ($122,400) |
| Construction — builder cost (4,800 SF × $111 builder grade) | ($532,800) |
| Home On builder margin (20% intro rate; standard 30%) | ($133,200) |
| Site development — utility hookups + lot prep (incl. 20% margin) | ($37,500) |
| Soft costs — design / permits / survey (~5% at cost) | ($26,640) |
| Contingency (10% of construction, AT COST — typically returned if unused) | ($53,280) |
| Construction loan closing + carry (10% APR on draws, 10-month build) | ($38,497) |
| Selling costs (~7%) — paid at sale closing, not out-of-pocket | ($92,400) |
| NET PROFIT TO INVESTOR | ~$283,283 · 21.5% margin · 105.9% cash-on-cash |
ARV support: Wake Forest new construction avg $243/SF (Jun 2026, Resideline); downtown townhomes listing $305k–$383k (Magnolia Trace / McKinley Homes 2026); 514 E Juniper Ave infill (2026) $679k. Modeling $275/SF on 1,600 SF = $440k/unit is conservative vs. listed comps. MAO $138,294 — list price $120,000 = $18,294 cushion below MAO at 21.5% margin (GOOD). SFR fallback (1 unit, 2,200 SF × $295/SF = $649k): all-in ~$502k, net ~$101k, 15.6% margin (MARGINAL); MAO for SFR scenario ~$90k (below $120k ask, so single-family only = PASS — make the zoning call first).
3-unit scenario: investor nets $283,283 (+21.5% margin, +105.9% cash-on-cash) on $267,352 out-of-pocket — GOOD. The $120,000 list price is $18k below the 20%-threshold MAO, giving real cushion. SFR fallback: nets ~$101k (+15.6%, +78% CoC) on $130k OOP — thin but workable at premium downtown finish. One phone call to Wake Forest Planning determines which scenario is live. If multi-unit is confirmed, this is the most capital-efficient entry in this scan batch.