Nailing this down MAO

[Jose Falconett]

I have tried looking all over biggerpockets but most people are only looking to find out how much their wholesale profit should be. In my opinion, a wholesalers profit should be determined last in the MAO formula when concluding if a deal is worthy.

However, I want to know how much profit margin a wholesaler should typically leave an end investor buyer?

Is it normal for a wholesaler to only leave this 30% difference for the Investor buyer or should wholesalers leave more.

Is the difference sufficient enough deriving from the Maximum allowable offer for the end buyer?

I understand the 70% multiplier differs between areas but that doesn't address if the percentage is enough!

Example: 100k ARV For simplicity the example property is owned free & clear.

20k Rehab

____ Wholesale profit

(70% x ARV) - REHAB - wholesaler profit = Max offer

(70% x 100k) - 20k- 10k= 40k

Again is it ok to flip to end buyer at 40K in this example or is it cutting it to thin?