What is a decent margin of profit

[Tony Nuttall]

LOT= $45k         

HOME BUILD= $150k

If I decided to sell once the home was completed what would be an average profit to make on something like this. This is just a generic situation I put together but I’m unsure of how much I should be aiming for on the backend. 10% ? 25% ?

[David Ramirez]

If you're buying a lot, here's a good rule of thumb that I learned from a developer: don't pay more than 20% of its After Repair Value (ARV) if it's in the city. But if it's rural, 5-10% depending on the demand.