BTS Duplex Deal Analysis

[James Brown]

Hello all, I'm a rookie to the GUC game and am carefully looking for land that makes pencils out a good deal with contracting expenses currently high in St. Louis market. i want to start of building to sell to grow capital for a bigger future townhome project. There are two adjoining lots. I want to buy both at same time to eventually build another second duplex on the other. Once first project is complete, will use refi profits to start the second duplex. I was hoping anyone could give advice with underwriting since I will be looking for funding after I buy the plans. Should I just buy one lot at a time to keep costs down?

Rundown:

15k/lot=30k

Construction cost roughly=300k (72% ARV)

ARV=425k 

HML interest 12.99%

6 months to complete

30k down (land equity)