MAO stands for Maximum Allowable Offer. It's the firm "walk-away" number you set before an auction to ensure you don't overpay and kill your profit margins. For a massive 7,011 sqft property like this in Buford, getting this number right is the difference between a win and a headache.
Most investors use the "70% Rule" as a baseline. You take the After Repair Value (ARV), multiply it by 70%, and subtract the estimated repair costs. Given your property's size and the $1.15M Frontflip valuation, here is a breakdown of how to think about your bid:
| Calculation Component | Estimated Value |
| :--- | :--- |
| After Repair Value (ARV) | $1,155,300 |
| Investment Threshold (70%) | $808,710 |
| Est. Rehab Budget | ($100,000) |
| Max Allowable Offer (MAO) | $708,710 |
Keep in mind, since this is an auction foreclosure, you need to factor in your "holding costs" like the $14,325 annual taxes. If the bidding crosses your MAO, be prepared to walk away. There is always another deal, but a bad buy on a house this size can be a heavy burden on your pocket.