Your maximum allowable offer is the highest price you can pay and still hit your target profit. Enter after-repair value, rehab, and your margin, and the calculator caps your bid or your offer to a seller before the numbers get emotional. Free, no account.
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Search live ZIP inventory first, then run the best address through this calculator before you call, bid, or spend money on deeper due diligence.
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Get the distressed-deal checklist, then search your ZIP for deals worth underwriting.
Worked example
Start with after-repair value, subtract rehab, closing, holding, selling, and title-risk costs, then reserve the profit you need before you bid or make a seller offer.
Maximum Bid or MAO = ARV - Rehab Costs - Closing and Holding Costs - Target Profit. If the auction price, buyer premium, or seller ask moves above your ceiling, stop.
ARV is what the property should be worth after all repairs and renovations are complete. Estimate it from recent comparable sales in the same area, using MLS data, county records, or a professional appraisal. ARV is the foundation of the maximum bid calculation, so spend time getting it right.
Yes. Holding costs such as utilities, insurance, property taxes, and loan interest add up quickly, especially if the project runs longer than planned. Set a realistic holding period so you do not underestimate total expenses and overbid at auction.
A credit bid is when the bank or plaintiff bids up to the full loan balance plus costs without spending new cash. If no public bid exceeds that amount, the bank can win the property by default. Research the judgment amount before the auction so you know what you may be bidding against.
Many distressed-deal investors model a target profit around 20-30% of ARV, depending on market conditions, risk, capital cost, and exit strategy. Use the calculator to test several profit margins before deciding what is realistic for your market.