This ground-up development opportunity presents a single-family residence project. The analysis shows potential returns based on current market conditions and construction costs. Adjust the toggles above to explore different scenarios.
| Address | 123 Main Street |
| City / State | Miami, FL 33139 |
| County | Miami-Dade County |
| Lot Size | 7,500 SF |
| Zoning | RS-3 (Residential) |
| Flood Zone | Zone X (Minimal Risk) |
| Planned Living Area | 2,200 SF |
| Configuration | 3 Bed / 2 Bath |
| Max Height | 35 feet / 2 stories |
| Setbacks | Front: 25' | Side: 7.5' |
| Utilities | All available |
| Year Built | New Construction |
| Item | Description | Amount |
|---|---|---|
| Purchase Price | Contract price for land | $150,000 |
| Closing Costs | Title, escrow, recording (2%) | $3,000 |
| TOTAL LAND COSTS | $153,000 | |
| Demolition & Clearing | Remove existing structure, haul debris | $28,000 |
| Category | Description | $/SF | Amount |
|---|---|---|---|
| Site Work | Grading, utilities, prep | $12 | $26,400 |
| Foundation | Slab or crawlspace | $18 | $39,600 |
| Structure/Framing | Wood frame, trusses | $45 | $99,000 |
| Exterior Envelope | Roofing, siding, windows | $35 | $77,000 |
| MEP Systems | Mechanical, electrical, plumbing | $42 | $92,400 |
| Interior Finishes | Drywall, floors, cabinets, paint | $55 | $121,000 |
| Fixtures & Appliances | Kitchen, bath, lighting | $18 | $39,600 |
| Site Improvements | Driveway, landscape, pool (if any) | $12 | $26,400 |
| TOTAL HARD COSTS | $237 | $521,400 | |
| Category | Description | Amount |
|---|---|---|
| Architecture & Engineering | Plans, structural, MEP design | $26,070 |
| Permits & Impact Fees | Building permits, inspections | $15,642 |
| Insurance | Builder's risk, liability | $7,821 |
| Property Taxes | During construction period | $5,214 |
| GC Overhead | Contractor management (5%) | $26,070 |
| TOTAL SOFT COSTS (12%) | $62,568 | |
| Loan Origination | 1.5% of loan amount | $8,000 |
| Interest Reserve | Construction period interest | $27,000 |
| TOTAL FINANCING COSTS | $35,000 | |
| Construction Contingency | 5% of hard costs | $26,070 |
LTV (Loan-to-Value): Loan ÷ Property Value
LTC (Loan-to-Cost): Loan ÷ Total Project Cost
Equity: Your Cash Investment
Interest-Only: Construction Loan Structure
Search Criteria: Within 1 mile | Sold within 6 months | Similar size (+/- 20%) | Similar quality
| Address | Beds/Baths | SF | Sale Price | $/SF | Date |
|---|---|---|---|---|---|
| Comp 1 - Similar Size | 3/2 | 2,150 | $720,000 | $335 | Recent |
| Comp 2 - New Construction | 4/3 | 2,400 | $850,000 | $354 | Recent |
| Comp 3 - Similar Quality | 3/2 | 2,100 | $695,000 | $331 | Recent |
| AVERAGE | $340 | ||||
| Item | Monthly | Annual |
|---|---|---|
| Gross Potential Rent | $3,500 | $42,000 |
| Less: Vacancy (5%) | ($175) | ($2,100) |
| EGI | $3,325 | $39,900 |
| Less: Operating Expenses (40%) | ($1,330) | ($15,960) |
| NOI | $1,995 | $23,940 |
Testing how the deal performs under adverse conditions.
Based on the analysis, this development opportunity shows potential. The projected ROI depends heavily on achieving the target ARV and controlling construction costs. Key success factors include accurate cost estimation, efficient construction timeline, and favorable market conditions at exit. Investors should carefully consider the stress test scenarios and ensure adequate contingency reserves.
This pro forma is for informational and educational purposes only. All projections, estimates, and analyses are based on assumptions that may not reflect actual market conditions. Past performance does not guarantee future results.
Key Assumptions:
Investors should conduct their own due diligence and consult with qualified professionals before making investment decisions. Lexicon Global Group makes no representations or warranties regarding the accuracy of this analysis.