Investment Info:

Single-family residence buy & hold investment in Cape Fear.

Purchase price: $169,900

Cash invested: $30,000

-Purchased as a Fix & Hold
-Used owner-occupied 5% down convention...

Great idea to hold on to your current townhome as a rental property and I am sure you have gained some sweat equity by the work you both have put into it yourselves.

Not a problem with selling house on rental lot, city transfers lease to new owner, it is common here and does not seem strange to these folks.Building cost: ~150-160K (doing it all myself, so lots of sweat equity), market value around 350-400k.This is intended for primary residence.Rents for similar units are around 2000/month.Looking at a return on cash invested if I rent it this looks good, however there is a ton of equity locked up doing nothing...Now have option to do this again.

You can be paid for management or have it as sweat equity paying it off.

KeelaDon't sweat the age, as I learned early, the deal does the talking.

No Sweat Equity: You* are not allowed to personally furnish goods or services to the IRA.

They also probably have some credit card debt (amount unknown).They are okay with getting 45k for the work they did along with "sweat equity" and "emotional" attachment.I'm sure there are a ton of you thinking: RED FLAGS!

I have GREAT connections and want to monetize those so I can get sweat equity, but more over, learn how it all works.What are some ways to acquire sweat equity and how do you value it?

Pending a title search, it could be the perfect opportunity to build some sweat equity in a great neighborhood for a personal residence.

Shouldn't his sweat equity be the input in this deal so he should not be compensated?