How to Calculate MAO: investor-focused explanation
To calculate MAO, multiply ARV by the investor’s target percentage, then subtract repairs and desired profit or wholesale fee.
Standard MAO formula
MAO = (ARV × 70%) − Repairs − Wholesale Fee is a common wholesale benchmark.
Why percentages vary
Some markets require 65%, some can stretch to 75%, and some buyers care more about rent, cash flow, or exit strategy.
Use MAO as a guide
MAO is not a guarantee. It is a fast offer framework that should be checked against real buyer demand and repair risk.
Frequently Asked Questions
What does MAO mean?
MAO means maximum allowable offer.
Why use 70% of ARV?
The 70% rule creates room for repairs, holding risk, resale costs, and buyer profit.
Does Dealzo show offer ranges?
Yes. Dealzo shows conservative, target, and stretch offer ranges.
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