Let me know if I am missing anything.Purchase cost of an old house on a 7,000 sq ft lot        - $ 1,800,000Architect Fees                                                            - $     30,000Other Soft Fees (like Permits)                                     - $     45,000Construction (3,000 Sq Ft)                                           - $   700,000Finance Costs(Borrowing around $1.4 m for 2 years      - $   110,000as primary residence mortgage)Selling Costs (5% of $3.3 mil)                                       - $   165,000------------------------------------------------------------------------------------Total Costs                                                                 - $ 2,850,000Selling Price                                                               - $ 3,300,000Profit                                                                         - $    450,000Are these realistic?

Let me know if I am missing anything.Purchase cost of an old house on a 7,000 sq ft lot - $ 1,800,000Architect Fees - $ 30,000Other Soft Fees (like Permits) - $ 45,000Construction (3,000 Sq Ft) - $ 700,000Finance Costs(Borrowing around $1.4 m for 2 years - $ 110,000as primary residence mortgage)Selling Costs (5% of $3.3 mil) - $ 165,000------------------------------------------------------------------------------------Total Costs - $ 2,850,000Selling Price - $ 3,300,000Profit - $ 450,000Are these realistic?

It is ALWAYS better to leave it out the soft cost items so the "owner supply the material for finishes".

@Darshil Parikh Like @Jaron Walling said this won't cash flow. if this is a buy and hold you have to take the soft cost in account.

This could lead to longer time on market and softness in home prices in the upper price segments.

not so now.lets prey for a soft landing in all this. 

Very smooth process, all on-line, and they did a soft pull first to give you rough terms, so you could decide before the hard pull. 

Grace but don't be too soft hearted - we don't run non-profits.

Starting off we have investors who will be LP's at 100% with sweat equity for us at anywhere from 5-10% as well as development fees incorporated to soft costs for any new construction.

I’m with ya - I definitely have a soft spot for dogs just like so many others.