Subject Property & Verified Comps
4 Comps Loaded
1842 Elmhurst Way
Austin, TX 78704 • Built 1978
List / Asking
$425,000
3
Beds
2.0
Baths
1,820
Sq. Ft.
Fair (C4)
Condition
Comparable Sales Ledger
Toggle to include/exclude
| Use | Property Address | Distance | Sale Price | Adj. ARV |
|---|
Derived Weighted ARV (After-Repair Value):
$528,400
Maximum Allowable Offer (MAO) Solver
Instant Underwriting
Recommended Target Offer
$318,880
-25.0% vs List
$79,260 Projected Spread
1. Calibrated After Repair Value (ARV)
$528,400
2. Estimated Rehab Budget (1,820 sqft)
-$63,700
3. Target Investor Return / Wholesale Spread
-$79,260
4. Estimated Closing & Holding Buffer
-$21,136
Calculated MAO (Max Purchase Price)
$318,880
Official Letter of Intent (LOI) Terms
Ready-to-Submit Purchase Offer
Underwriting Formula & Offer Methodology
The 70% Maximum Allowable Offer (MAO) Rule
Widely used by professional real estate investors, flippers, and wholesale acquisitions teams. The baseline formula calculates purchase ceiling as: MAO = (ARV × Target Factor) − Estimated Rehab − Wholesale Fee. The target factor accounts for holding costs, mortgage debt service, selling commissions (typically 5-6%), and risk buffer.
Comparable Adjustments & Distance Decay
Comps within 0.5 miles with similar square footage (within ±20%) and closed within the past 180 days receive highest weighting. Adjustments normalize for square footage variance (typically $90â$140/sqft base adjustment) and structural improvements to establish after-repair value (ARV).