You have to tie the emotion to the property so that people can see themselves there.

And how would I tie this in into my real estate business somehow?

I considered tax lien investing locally but saw the returns bid down so low I felt it wasn't worth tying up the money.

Scott mentioned, if you lack experience, get an inspection up front so you don't miss something and they can come back when you're done to ensure the buyer will be happy.....home warranties can be worth it in the retail market.Don't tie up money in materials to just sit there, buying an HVAC unit 3 months before it goes in isn't wise, order it, have the supplier hold it, pick up and pay before installation. 

But, I'll break it down really simply...1...screen the lead and do an initial analysis to determine if there is potential for a deal2...inspect the property and get a rough estimate of required rehab3...analyze the property with the rehab costs included to determine a target price and a Maximum Allowable offer price4...negotiate the deal and get a Purchase Contract signed5...execute your primary exit strategy 6...if the primary exit strategy won't/isn't work, move to the 2ndary  (You should have at least 2 for every deal.)7...execute the exit strategy8...deposit your profitIf you don't know what any &/or some of that means, then you're not ready to start tying up people's property with contracts.

Dave, the only reason i can see him paying you is if you want to raise the cost basis of the asset, showing that that amount was paid out to do the work ( for future sale of the property) other than that, i don't know why he would be paying you to do work on your own house, you may think you are making money by getting paid, but in the long run it is costing you money by having it tied to a mortgage that you will pay for years. have him reduce his contract amount depending on the work you do, put it as a credit towards the end, your loan will not be as much that's principal and interest you will save.

Do you want to tie up your money with this property?

I'm tying to find some direction for this deal ( or whatever ends up being my first deal) This is a FSBO so I won't be using the broiler plate contract.

You just got stronger Rumen, I wish you the very best man!!

Do you have ties to the area?