Docs navigation
Methodology
The MAO solver
MAO — Maximum Allowable Offer — answers the question underwriting exists for: what is the most I can pay for this property and still hit my targets? Instead of a rule-of-thumb shortcut, REIzer reverse-solves the full analyzer engine, so the answer accounts for your actual financing, expenses, and rehab plan.
How it works
- You set the targets. Minimum acceptable values for the metrics you care about — cash-on-cash return, DSCR, cap rate, monthly cash flow, or strategy-specific targets like capital recovery (BRRRR) and profit margin (flip). Each strategy ships sensible default targets you can adjust.
- REIzer solves backwards. For each target, it binary-searches the price space ($10K to $50M), re-running the full analyzer at each candidate price, to find the highest price that still satisfies that one target. Higher price generally means more leverage and lower returns, so each target produces a price ceiling.
- Your MAO is the lowest ceiling. That is the price at which every target is just barely met. The target that produced the lowest ceiling is your binding constraint — the metric that stops you paying more, and the first place to look if you want to justify a higher offer (raise income, cut costs, or consciously loosen that target).
Why solve the real engine instead of a formula?
Closed-form shortcuts (like the 70% rule) ignore financing structure, taxes, reserves, and holding time. Because the solver runs the same calculation as the analyzer itself, the MAO it reports is consistent with the analysis you'd get if you typed that price in by hand — including closing costs, vacancy adjustments, principal-vs-interest splits, and refinance mechanics.
Edge cases
- No price works. If a target can't be met at any price in the range, the solver reports which targets failed — the fix is loosening a target or improving the income/expense assumptions, not hunting for a magic price.
- Every price works. If your targets are loose enough that any reasonable price satisfies them, there is no binding maximum — the solver asks you to tighten a target until a real ceiling appears.
Related: The scoring engine · DSCR & the 70% rule · Metric glossary