Skip to content
PDM Property Deal Calculator

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.

Updated October 4, 2026

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.