Wholesale / MAO calculator — Texas

Frequently asked questions

How do you calculate MAO in wholesale real estate?

A common baseline is the 70% rule: MAO starts with ARV multiplied by your target percentage, then subtracts repairs, closing costs, holding costs, and assignment fee.

Can MAO be negative?

Yes. A negative MAO means the deal does not support your target margin at those assumptions and likely needs a lower purchase price or different terms.

Can I save wholesale calculator results?

This calculator does not save your session. Use a free Veld account to save deal assumptions, compare scenarios, and track properties over time.

Do Texas property taxes affect cash flow in this calculator?

Yes—and they matter. Texas has no state income tax but property taxes are among the highest in the country. Default inputs start with HUD-based rent estimates; enter your expected annual property tax and insurance load in the expenses field to model real cash flow.

What is a good cap rate in Texas?

Residential investment cap rates in Texas vary by market. DFW and Houston investors typically see 5.5–7% on SFR and small multifamily as of 2024–2025, while Austin and premium suburban markets compress closer to 4.5–5.5%. Texas's high effective property tax (~1.6–2% of value depending on county) meaningfully reduces NOI—enter your actual tax bill rather than using a national default to get an accurate cap rate.

How do I estimate cash-on-cash return in Texas?

Cash-on-cash return in Texas depends heavily on your down payment, financing rate, and how accurately you model property taxes and insurance. With a 20% down payment and 7–8% mortgage rate, many Texas SFR deals run 4–8% CoC. High property taxes reduce NOI, which compresses CoC relative to lower-tax states—use local tax estimates, not a national rule of thumb.

How should I set MAO in Texas wholesale deals?

Start from realistic ARV around $339,500 median home prices, then subtract repairs, holding, and transaction costs before assignment fee. Adjust your ARV multiplier for local buyer demand and renovation risk, not a one-size national rule.