A cash offer for an investment property is typically derived from the After Repair Value minus estimated repairs, desired profit, and holding/selling costs. This produces a price that leaves room for a return after the work is done.

Investors often cap their offer using the maximum allowable offer formula — see our MAO calculator — to protect their margin on a flip or BRRRR.

Cash offers close fast, skip financing contingencies, and often buy as-is, which is attractive for distressed or time-sensitive sales. Learn how OfferMarket buys on our we buy houses page.