| Line | Amount |
|---|---|
| Gross revenue — sale price (10 homes × $627,000 comps) | $6,270,000 |
| Land acquisition + closing (~2%) | ($510,000) |
| Construction — builder cost (22,000 SF × $111 builder grade) | ($2,442,000) |
| Home On builder margin (20% intro rate; standard 30%) | ($610,500) |
| Site development + subdivision infra — 10-lot public utility hookups + 9 new-lot roads/mains (incl. 20% margin) | ($768,750) |
| Soft costs — design / civil / permits / survey (~5% at cost) | ($122,100) |
| Contingency (10% of construction, AT COST — typically returned if unused) | ($244,200) |
| Construction loan closing + carry (10% APR on draws, 18-month build) | ($317,084) |
| Selling costs (~7%) — paid at sale closing, not out-of-pocket | ($438,900) |
| NET PROFIT TO INVESTOR | ~$816,466 · 13.0% margin · 54.4% cash-on-cash |
ARV support: Holly Springs new construction median ~$289/SF (Blue Orchid Realty Aug 2026); W Holly Springs Rd new homes listing $794k–$821k at 3,100–3,400 SF (~$240–$258/SF list). Modeling $285/SF on 2,200 SF = $627k/home (base, conservative). Upside scenario — 12 lots × 2,200 SF × $310/SF (Peterson Station premium): revenue $8,184,000, all-in $5,918,065, net $1,693,055, margin 20.7% = GOOD; MAO $551,243 (above $500k ask). Base-case MAO $97,880 — $500k ask is $402k above base MAO; deal requires either significant price reduction OR confirmation of 12-lot density + $310/SF premium to reach 20%. 358+ DOM makes sub-$400k negotiation very realistic.
At $500k asking and base comps ($285/SF, 10 lots), investor nets $816,466 (+13.0% margin, +54.4% CoC) — MARGINAL, below the 20% target. Path to GOOD: (1) negotiate land to $250k–$375k (justified by 358+ DOM), OR (2) confirm 12-lot yield at $310+/SF adjacent to Peterson Station — at that upside, deal nets $1,693,055 (+20.7%) even at full $500k ask. The confirmed public sewer and MR future designation are infrastructure wins that are hard to find at any price; the valuation is simply too high for the base-case math. Open at $250k, settle at $375k. Suitable for investor with $1.5M+ liquidity and 18–24 month runway.