Research guide
Fix and Flip MAO: What the Number Actually Means
Use maximum allowable offer as a disciplined screening threshold, then verify every cost behind it.
Maximum allowable offer is a residual calculation: start with a defensible after-repair value, subtract project costs and the target profit, and inspect the remaining purchase budget.
Include the costs that move with time
Holding costs, financing, utilities, taxes, insurance, selling costs, permits, and contingency all affect the result. A short hold-period assumption can make a fragile deal look safe.
Pair MAO with a schedule
Run delay and budget-overrun scenarios. The price you can pay depends on the full project timeline.
Research boundary
This guide is educational context. Verify current local facts and professional advice before making a decision.