5.0 · 624 reviews · Jim Blackburn · NMLS #1072866
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Spec Home · Build to Sell

Build To Sell Spec Home Calculator: Purchase, Teardown, Build, Sell, Profit

Estimate your cash to close, holding costs, and profit potential on a spec home you plan to acquire, tear down, and build — all with the same loan.

Built by Jim Blackburn · NMLS #1072866 · $500M+ closed · 7× Scotsman Guide Top Producer

Costs

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$

Estimate all labor and material costs.

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Permits, architectural, and engineering fees.

$

25% is the minimum down; this reduces the loan dollar-for-dollar.

Sale & Timeline

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Estimate with sold comps in the last 6 months.

%

~6% with a Realtor, ~3% if you are one; 2% for seller costs.

Carry & Financing

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$
$

Estimated permanent rate after the interest-only construction period.

Summary

Costs & Financing

Property Costs$1,650,000Purchase + hard costs + 10% contingency + soft costs.
12 Months Interest Reserves$123,626
Maximum Loan Amount$1,330,220Lesser of 75% of costs or 75% of ARV.
Desired Loan Amount$1,330,220
Estimated Cash Out of Pocket$443,407

Holding & Exit

Holding Costs$141,626Interest, tax, insurance, HOA over months held.
Estimated Exit Cost$240,000
Total Project Costs$2,531,626

Profit

Profit Before Tax or 1031 Exchange$468,374
Profit Per Partner$93,675
Cash on Cash ROI % Estimate105.6%Profit relative to cash invested.
Monthly Income Target to Qualify$29,242
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Estimates only — not a commitment to lend.

Jim Blackburn

By Jim Blackburn

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Important Disclaimer

This calculator is for illustrative purposes only and does not constitute financial, legal, or investment advice. Results are based on general assumptions and hypothetical scenarios and may not reflect actual performance or eligibility. This is not a loan approval or loan estimate. All borrowers must qualify for financing based on credit, income, asset documentation, and property-specific guidelines. Please consult a licensed mortgage professional or financial advisor before making any financial decisions.

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