Does MAO formula from Rich Dad work?

[Account Closed]

I recently attended a webinar on real estate investing hosted by Rich Dad Poor Dad. I am looking at the MAO formula and the 1% rule when searching properties in my area. I was wondering if anyone had experience with either or both of these and could let me know how they worked out and any advice when applying them?

[Ned Carey]

Without knowing exactly what formulas they teach, it is hard to say.

If by MAO you mean ARV X 70% - Repairs = MAO yes that is a common formula and works fine. However that and the 1% rule are "rules of Thumb" and may not work for all people in all situations. Personally I would never buy a rental at 1%.

Good luck - Ned