BiggerPockets Wholesale Calculator MAO Calculations Formula Help
As a newbie real estate investor I believe that the tools offered on BiggerPockets are Awesome. However, I'm very analytical and I like to understand how to perform the calculations by hand. I have been trying to figure out how the Wholesale Calculator is calculating the MAO. I've tried using the following formula: MAO = [ARV] – [Flipper’s Profit] – [Repair Costs] – [Fixed Costs] – [Wholesale Fee], however my calculations are much different than what the calculator calculates as the rental owners purchase price.
Here are the numbers that I'm using:
After Repair Value = $150,000
Desired Wholesale Profit = $5,000
Cash Buyer's Desired Cash on Cash Return = 12%
Loan Amount = $100,000
Loan Interest Rate = 5%
Amortized = 30 years
Purchase Closing Cost = $3,500
Total Gross Monthly Rent = $1,800
Other Monthly Income = $50
Property Taxes = $1,350
Monthly Insurance = $45
Vacancy Rate = 8%
Repairs = 8%
Cap Ex = 5%
Property Mgmt = 10%
So based on these numbers I'm calculating $150,000 - $18,000 (12% COC) - $25,000 - (not sure what's considered fixed cost) - $5,000 = $102,000 but the calculators states that my MAO is $124,767.84.
Help, what am I doing wrong???