How to calculate sweat equity??

[Adam Ferro]

I understand that when you fix up a house it increases it's value. I am curious how you really determine how much it increases the value. Is it just by how much you spend on the improvements? or is there another calculation that I can do to make sure that I am getting out what I am putting in?

[Jake S.]

Hey Adam, Basically you want to take a look at comparable "after repair value" properties in the area to get an idea just how much value the property will gain.

The quality of materials and extra work you do, will increase the value, but at a certain point you reach a point of diminishing returns, so you definitely need to find that sweet point