I lived there 4 years almost for free, put $10k into it and a lot of sweat, and sold for a $40k profit.  

If you get a property for $200K because it needs new carpet paint and bathrooms redone then your sweat equity can help build your rental stable much quicker. 

Deal specifics:Total project cost: $1,260,000HM loan (approx: 75% of deal)Investors cash: $360k (split 3 way $120k each investor)Projected refi loan amount $1,250,000Projected Total Investors cash in deal after refi: $110,000Projected Total Net income (after mortage) post refi: $53kInvestors will all own their share in the building minus 20% for the managing member's sweat equity.

The properties will be bought under my LLC, House to Home Rehab, and then rehabbed and if I do my due diligence, I should have at least 20-25% sweat equity built into the property once completed.

We bought and fixed up a house in 2012 and due to sweat equity and fortunate market conditions, have some solid equity.

It's always easier to walk away from sweat equity versus cash.

And don’t ever mention “sweat equity” these days.

I'll also be looking for value add into my property purchase to add some sweat equity into the deal.   

Until they act, don't sweat it, the vast majority are blowing more hot air than a furnace in Alaska in the middle of January.

When we first started looking at houses, John and I were looking at houses that needed a lot of sweat equity put into them.