Sweat equity vs. hiring contractors

[Rhonda Shrum]

I keep reading differing things...either the "profit is in the sweat equity" or "I made a mistake by trying to do it all myself." How do you know what's right? My husband and I both work full time. Our first flip (which, I've set a goal to buy my first house this summer) will have to use contractors. I am terrified, though, of overspending on labor. Eventually I'd like us both to do this full time, and at that point, yes, we can both do a lot of work. But which is the smarter way? Can I still make money, in St. Louis, hiring out?

[Jassem A.]

Depends who you hire. Some people want your life savings and some people will work for peanuts. I do about one day of work a week in order to cut costs but also for the exercise and experience.