Deal Analysis help new construction

[Michael Ketchen]

Hi All,

Looking for input on potential deal I am having a hard time evaluating if the numbers work or not. Any and all help appreciated. 

Two 1+ acres lots already approved to build (All docs have been reviewed by my attorney)

Asking 195K (Selling Agent believes bank will let go for 160k)

Two new construction colonials ARV is $430k a piece so $860k total

Construction cost is $225K per home

Have not been through the New construction process yet, so looking for any information or helpful tips that I may be overlooking in evaluating this deal.