Скачать или смотреть Sweat Equity in Real Estate

So, you want to own or buy a Rental Property? Join Upper Edge Property Management where, in the next installment of this Guide to Real Estate Wealth, Garret Wong explains the concept of Sweat Equity in Real Estate.

Sweat equity refers to the DIY labour you will put into a project, to save money on construction work, landscaping, plumbing electrical, or any other area that can improve a property.

When calculating your numbers on a deal, the renovation costs should ALWAYS be calculated using a contractor to perform the renovations. Run the numbers as if a contractor is performing the work, so then, if you decide to take on all or portions of the renovations, it’s extra cash, equity in the project, etc. and more profit.

If considering sweat equity, don’t forget to factor in more time. What about the hidden costs of taking longer? Holding costs! You have extra mortgage payments, extra insurance, extra property taxes to pay. And because the property remains vacant longer than expected, you also have vacancy loss: Meaning, if the rental value is $1,500 per month and it takes you 2 extra months to renovate, you’ve now lost $3,000 in rental income. If you factor in 2 extra months of mortgage, property taxes and insurance, you might be at a loss of 7 or 8 thousand dollars!

We're not saying using Sweat Equity is wrong…It really depends on your particular situation.


Upper Edge Property Management, located in Winnipeg, Manitoba, Canada, has been successfully managing rental property for their investors since 1999, and chooses to specialize in the management of single family homes, condominiums and smaller multiplex buildings and apartment blocks.

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   / @garretwong