The importance of "skin in the deal"

[Joanne Basecki]

I understand the term "skin in the deal" when it comes to a down payment a buyer makes.

I don't understand the same term at the point of sale:

Example: Let's say I paid for a property its entire price of 5K (used no loans) and the ARV is 150K.

I can see, the 5K does not seem like much here, even if it is my entire life savings. However, if indeed the numbers above are accurate, and the property needs 40K in rehab, can I still sell it to an investor for 50K? Or, will there be an issue with my "skin in the deal"?