Use this ARV calculator to quickly compute the After-Repair Value of a property, helping you make informed real estate investment decisions.
Real Estate Maximum Allowable Offer (MAO) Calculator
This calculator helps real estate investors determine the maximum amount they should offer for a property while still achieving their desired profit margin.
How to Use the Calculator
- Enter your estimated After Repair Value (ARV) for the property.
- Input the estimated repair costs to bring the property up to your desired condition.
- Add the costs associated with acquiring the property, such as closing costs.
- Input your desired profit from the investment.
- Click the “Calculate” button to see the Maximum Allowable Offer for the property.
How It Calculates
The calculation uses the formula:
Maximum Allowable Offer (MAO) = ARV - (Repair Costs + Acquisition Costs + Desired Profit)
Limitations of the Calculator
Please note that this calculator relies on your ability to accurately estimate values and costs. Inaccurate inputs will result in unreliable outputs. Additionally, this calculator does not account for unforeseen costs or market changes, which may affect the actual viability of an offer. Always conduct thorough due diligence before making any investment decisions.