MAO (Max Allowable Offer) Calculator — Los Angeles, CA
Pre-filled with localized assumptions for Los Angeles. Replace the defaults with your real numbers (rent comps, taxes, insurance, repairs, and reserves) to get an accurate result.
Inputs
Results
Tip: Many buyers vary between 65–75% depending on market, financing, and rehab complexity.
Los Angeles Local Market Note
Informational onlyLos Angeles has its own Rent Stabilization Ordinance covering most buildings built before October 1978, layered on top of statewide AB 1482 rent caps — regulatory due diligence is essential on older multifamily. ADU conversions have become a leading value-add strategy since California streamlined permitting. Investors often look to neighborhoods like Highland Park and the San Fernando Valley for relative affordability within the metro.
Local context for general information — not financial, legal, or tax advice. Verify current regulations and market data before making investment decisions.
How to Use This MAO Calculator for Wholesaling (Mini Guide)
Use this to back into the highest price you can offer while still leaving room for repairs, your assignment fee, and the end buyer’s margin. These defaults are pre-filled for Los Angeles, CA. Always replace them with your real numbers when you have them.
MAO in plain English
MAO (Max Allowable Offer) is the highest contract price that still makes the deal work after repairs, fees, and costs.
If your contract is above MAO, the deal usually breaks unless something else changes (ARV, repairs, fee, etc.).
How to set inputs so your MAO is real
ARV: use comps you can defend — don’t anchor to the highest sale.
Repairs: be conservative; underestimating repairs is the #1 reason deals die or get retraded.
MAO %: many buyers land around 65–75% depending on market and rehab risk.
Other costs: include title/closing, holding utilities, cleanup, etc.
How to use it during negotiation
Start with ARV you can defend, then repairs with a buffer.
Pick a MAO % that matches your buyer (ask them!).
Your output is your walk-away number — don’t negotiate above it unless you’re intentionally reducing your fee.
Quick checks to avoid dead deals
If it only works with optimistic ARV + low repairs + high % — it’s probably thin.
If it works with conservative repairs and a lower % — you likely have a real assignment opportunity.
How to use this calculator in Los Angeles
Start with the pre-filled assumptions for Los Angeles, then replace them with your deal’s numbers. If you’re an investor, keep vacancy and reserves conservative. If you’re a homeowner, pay special attention to property taxes and insurance — these often drive the rent vs buy decision.
Nearby cities in CA
Explore nearby cities to compare assumptions and outcomes.