MAO is the highest price an investor should pay for a property while still hitting their target profit after repairs and costs. It keeps you from overpaying on a flip or BRRRR.

A common formula is MAO = ARV × 0.70 − repair costs. Estimate the repair figure with our Scope of Work calculator, then pressure-test the full deal with the Fix and Flip calculator.

The 70% factor builds in a buffer for holding costs, selling costs, and profit, so the investor still earns a return after buying, renovating, and reselling.