Cash deals and MAO formula

The MAO formula

MAO equals ARV times 0.70 minus rehab minus your assignment fee. The 70% rule is the cap rate cash buyers use to leave room for their margin, holding costs, and selling costs.

Floor and ceiling

Rinsed shows two MAO numbers on every cash deal. The floor uses a $30k assignment fee target. The ceiling uses $10k. Your offer goes somewhere in that range depending on competition and seller motivation.

• Floor (your dream) — ARV × 0.70 − rehab − $30k
• Ceiling (still profitable) — ARV × 0.70 − rehab − $10k
• Walk-away — anything above the ceiling means no fee

When cash is the right play

Cash works when the property needs real rehab (medium cosmetic and up), the seller wants speed and certainty, and the equity gap between listing price and MAO is workable. If those three boxes check, cash is the path.

When cash fails but creative wins

If the seller is overleveraged, doesn't need cash today, or owns the property free and clear with no urgency, cash will price you out. That's when SubTo or seller finance saves the deal.

Buyer profit math

On every cash MAO, Rinsed shows the buyer's profit at floor and ceiling. If buyer profit is below $40k on a flip or below $25k on a wholetail, you'll have a hard time placing it. Above those numbers, you've got a deal worth pushing.

Cash deals are the bread and butter of wholesaling. The MAO formula is straightforward, but knowing when cash is the right play and when to walk away is what separates volume wholesalers from one-deal-a-quarter wholesalers.