Hope Valley Heights
2940 Chapel Hill Rd, Durham, NC
Hope Valley Heights
Project Type:
Build-to-Sell
Development Type:
Attached House Subdivision
Project Status:
In Progress
— KEY METRICS & OUTCOMES
Turning Half an Acre Into High-Value Housing
Opportunity Overview
We got an email from a wholesaler. The asking price was $300,000, but we knew it was still a good deal, even at $320,000. Because the wholesaler was getting a lot of interest, we offered $20,000 over ask in order to secure the property.
EHC was firmly instantiated in Durham, and we knew we could build small houses or other new housing types on the property, but SCAD had not been passed yet, and there was hope that this would ease some of the existing restrictions.
Our Strategy
Initial Plan: The project was originally planned as a for-rent development with attached houses designed to include garages and ADUs to enhance density and long-term income.
Strategic Pivot: After evaluating the ADU component and finding limited local comparables with a weaker path to supporting target returns, BETTER shifted to a for-sale product and removed the ADUs.
Quality Focus: Resources were redirected into higher-quality duet construction that aligned with neighborhood demand and maximized outcomes for investors.
By-Right Development: BETTER leveraged by-right development strategies to transform the half-acre into a set of higher-value, more flexible homes.
Challenges
This project required coordinated execution and problem-solving at every stage:
Regulatory LandscapeDurham was already deep into its push for density-oriented housing solutions, with the Expanding Housing Choices initiative in place long enough for builders to understand which approaches generated the greatest returns. | Strategic TimingThe opportunity required careful timing, zoning, and design choices to maximize the land's potential in a shifting regulatory landscape. While SCAD later allowed for more value to be unlocked, moving sooner with available options ultimately yielded stronger outcomes when accounting for the time value of money. |
Design AdaptabilityCreating a more flexible design with universally appealing features, such as a primary suite on the first floor, would have provided additional options as the market shifted. | Revenue OptimizationKeeping the existing tenant in place during the approval process would have generated an additional $1,000 per month, highlighting the value of maintaining rental income until subdivision approval requires demolition. |
Qualitative Wins & Investor Returns
Policy Alignment & Returns: BETTER delivered luxury living options that aligned with Durham's evolving housing policies while meeting investor expectations for strong returns.
Strategic Proof of Concept: This project provided a test case for BETTER's progression from fix-to-rent and build-to-sell projects into more sophisticated by-right development that could scale with the city's growth.
Hope Valley Heights highlights BETTER’s evolution from smaller fix-and-flip projects into strategic, by-right development. It demonstrates the importance of timing, adaptability, and investor alignment in navigating Durham’s fast-changing housing landscape. Most of all, it reflects BETTER’s commitment to pairing investor performance with meaningful housing solutions.
Project Analysis | |
Market Value | $5,176,000 |
Total Costs | $4,643,000 |
(-) Purchase Costs | $625,000 |
(-) Build Costs | $3,360,000 |
(-) Transaction Fees | $243,000 |
(-) Loan Fees | $350,000 |
(-) Other Fees | $65,000 |
Net Proceeds | $543,000 |
Relevant Metrics | |
Project Return | 41.3% |
Equity Multiple | 1.68x |
