I think in theory, and probably in reality, that sweat equity is great. I mean it's great to have someone else come out of pocket to pay for expenses on a property. I haven't done any of those as mine I wholesale to my buyers or fix it up retail as it's just hard for some people to see past the rough edges.

Let me play devil's advocate here and through one suggestion into offering property with sweat equity that I can think of. If it were me, I'd be sure and very plainly state in my contract with buyer that no occupancy until rennovations are outlined and completed. I know there are some out there that do deals with people moving in and fixing up the place on their dime.

It is just that I've seen a "worst-case" scenario with an owner made a sweat equity deal with another rehabber. The rehabber made all types of unfinished changes really make the place worst off than before, and then defaulted on place. And lastly, you sure don't want a tenant in the property before the rennovations were complete.

Just my $.02 worth so that and another $1 may not buy you a cup of coffee so take at face value and get other opinions too.

Thanks,
Scott Rister