What us "regular" people do is we take our gross rent and then multiply it at 85% or 80% (depending on what metric you want to use) and THEN we calculate our cash flow.

**Please Note:one thing that the MAO does not take into account is anything odd about the house that might make it harder to sell ⦠things like a busy street, ugly surrounding homes, a nearby commercial property, etc.In these cases, you have to think about how much the final price will have to be reduced to get it to sell.Make sure you either reduce your ARV or increase your Investor Buyer's profit by that amount, thus appropriately reducing your offer to the Seller.MAO Calculation Example:Let's say that you did all of your homework, and decided that after evaluating all the comparable sales data, you've determined that the ARV for your subject property is $140,000.Based on your evaluation of the property, you determined it would take about $15,000 to get it to look like all of the comps.To calculate the B/S/H, you take the $140,000 ARV, and multiplied it by 15% which equals $21,000 [$140,000 x .15 = $21,000].You decided that your profit should be $10,000 as the Assignment Fee for a wholesale.The Investor Buyer’s profit is calculated by multiplying the Rehab costs by $1.25 to get $19,000 [$15,000 x $1.25 = $18,750].Now, plug all these figures into the MAO formula and you calculate that the most you can offer on this property is $75,000.ARV:$140,000Rehab:$15,000B/S/H:$21,000Profit (you):$10,000Assignment FeeProfit (buyer):$19,000MAO$75,000But you’re a great negotiator and the Seller agreed to a $71,000 purchase price.

Log how many hours you spend doing this and multiply by whatever you believe your hourly time is worth....then see if you actually saved any money DIY..........just sayin'

HelloGEOGRAPHYCountyNJ:MIDDLESEXPROPERTYProperty TypeResidential: Multi-FamilyResidential: SFRResidential: TownhouseResidential: DuplexResidential: TriplexEquity(%)30 40 to 100 % maybe as low as 20% depending on the fluctuation of values Last Market Sale Date01/01/1950 1900-01/01/2006 2009OPTIONSOWNER-OCCUPIEDAbsentee Owned In-StateAbsentee Owned Out-of-StateALL STATESADDRESS-COMPLETENESSMailing and Property address CompleteCORPORATE-OWNEDExcludeAddsExclude trust ownedInclude a Value not to exceed median and not lower than a multiplier of value times % of equity that youre comfortable buying.Since you can't grab BEDS add Sq 1100- 1800

My business has increased and multiplied just due to coffee and a few ride arounds with them.

@Mark Moore , some of your numbers don't add (or multiply) up.--$875/month is $10,500/yr not $10,800--those maintenance and management expenses seem very low.  

Eventually as time passes you will experience a 20-22 times multiplier. 

However your multiplier is huge. 

Then multiply by 50%.

What I usually do is take the most recent 3-5 properties and do an average price per square foot and then your subject property multiply the square footage by your average price per square foot - this should get you close to a comp price.