MAO Calculator
Maximum allowable offer: quick 70% rule screen and a full all-in offer based on actual costs and your target profit.
MAO Calculator
Rule-of-thumb quick screen + all-in maximum allowable offer
Property values
Conservative sold comps only
70% is a common starting point. Adjust to your actual criteria.
All-in cost inputs
Charlotte typical: 6–8% (commission + title + fees)
10–20% buffer on rehab estimate
Min: greater of $40K or 15% of ARV = $51,000
Results
The 70% rule, and why it's a starting point, not an answer
The 70% rule says your maximum offer should be 70% of ARV minus estimated rehab. It's useful for quickly screening deals before you invest time in full underwriting. If the asking price is already above the 70% MAO, you know you need either a lower price or a higher ARV to make the deal work.
The problem is that 70% is a blunt instrument. It doesn't account for your actual holding costs (financing rate, insurance, taxes, utilities), your actual selling costs (commission structure, concessions, title), or your profit target. Two deals with the same ARV and rehab can have very different all-in MAOs depending on how long you hold, how expensive your capital is, and how much commission you're paying.
What the all-in MAO tells you
The all-in MAO works backward from your required net proceeds. It deducts every cost bucket, rehab, contingency, buy-side closing, hold period costs, sell-side closing, and your target profit, from the ARV. What's left is the most you can pay and still hit your number.
Use the 70% rule to decide whether to underwrite. Use the all-in MAO when making an offer.