All Forum Posts by: Matt Maluchnik

I'm looking at a property and trying to determine the MAO as a % of ARV. From what I'm reading the equation should be 75% of ARV...so we are factoring rehabs. BUT...do we normally factor in other costs as well...Home Inspections, Title Insurance, Document Prep, Hazard Insurance, Holding Costs, Marketing Costs...ect...as a part of the 'costs'?

Example:

ARV = $85,000

Rehab = $20,000

MOA = (.75*$85k)-$20k = $43,750

BUT...if I factor in those other costs....

MOA = (.75*$85k)- $20k - $2,300 = $41,450

..if that's the case, am I missing something else?  Or was I correct on the first one?