MAOMaximum Allowable Offer. Highest price an investor can safely pay based on the current deal model.
Lender CostEstimated cost of borrowed money. Calculated as 6% of Purchase Price plus Rehab.
Safety MarginBuffer between purchase price and allowable offer. Positive = cushion, negative = above safe range.
HoldingEstimated carrying costs while you own the property before resale. Calculated as 1.5% of ARV.
ClosingEstimated closing and resale transaction costs. Calculated as 2% of ARV.
Broker CommissionEstimated agent commission when property is sold. Calculated as 5% of ARV.