Pricing strategies tailored to each San Antonio market type - know when to use 70%, 75%, or 65%.
MAO = (ARV × 70%) - Repairs - Your Fee
This is your starting point. But in San Antonio, you'll need to adjust the percentage based on the market type and current conditions.
65-68%
MAO Percentage
$15-25K
Target Fee
$50-100K
Typical Repairs
Higher price points = tighter margins. Flippers need more room because their holding costs are higher.
68-72%
MAO Percentage
$12-18K
Target Fee
$35-60K
Typical Repairs
Sweet spot for most buyers. Faster closings, reliable ARVs, strong buyer demand.
70-73%
MAO Percentage
$10-15K
Target Fee
$25-45K
Typical Repairs
Market to both flippers AND landlords. Landlords may pay more because they care about cash flow, not just profit.
72-76%
MAO Percentage
$8-12K
Target Fee
$15-30K
Typical Repairs
Landlords calculate differently - they care about cap rate and cash flow, not flip profit. Can often pay more than 70%.
"Based on the foundation crack and the 40-year-old roof, here's what I can do..." makes the offer logical.
"The house on [Street Name] just sold for $X, and it had a newer roof..." SA sellers know their neighbors.
"We can close in 2 weeks. BCAD shows your taxes are $4,500/year - that's $375/month you won't have to pay while waiting."
"I'm looking at $145-155K depending on what we find at inspection" gives you room to negotiate.
There is no one-size-fits-all in San Antonio. Premium flip markets need 65-68% to work. Landlord markets can go to 75%+ because landlords calculate differently. Know your market type BEFORE you make the call, and adjust your formula accordingly.