All Forum Posts by: Kenny Dahill

Congrats Junior!  You're in a 'problem' market but found a fantastic solution; out of state properties!  Kudos and best of luck.

Absolutely agree, if it fits your intent.

Come up with your own game plan, which starts by learning.  If all you ever want is cashflow, then owning fewer properties with less debt (also known as leveraged) will be ideal.  The less leveraged (debt), typically lower returns but more cash earnings.  That is never a bad thing if it fits your need!

I look at any investing as a financial diet, the same diet doesn't work for everybody.  Same goes with any form of investing, so find your financial diet.  Ask yourself some important questions and be honest with yourself: how much stress do I want, how many hours managing will I spend, how risky am I comfortable being, etc.

Nothing wrong with having ambitious goals.  A few suggestions to early investors: identify your weakness and learn.

If you do not understand the finances and how everything interacts with one another, learn it.  In my opinion, the best way to learn how it all ties together is to create your own pro-forma's instead of using somebody elses.  Once you've created it then practice analyzing deals.  I used to do about 5-10 per day during the week just to get the hang of it.

If you do not understand construction and afraid you'll be taken advantage of, go learn at Habitat For Humanity.

Looking for deals can be tough these days, especially in Austin.  But talk to people who are investors or realtors as they might know of an opportunity.  I would start looking today, deals don't often pop up for your first time so if you think you'll be ready in Jan then chances are it'll take a few months after to actually get a deal.

And finally something I did a little but not too excessively: reverse engineer.  You know your goal of $100k, but what's the plan to get there?  How many units, properties, how fast can you acquire, are you full or partner, etc.  That will really help set your path to achievement.

Best of luck!

A few questions, what type of an agreement is used when an agent/manager are hired to fill a rental unit only?

If you're hired to do so, does your broker have to allow property management?  I have heard even placing a tenant in a rental could be considered property management, and others have said it is not.  Thanks!

 Well as an Excel lover, I'd find it hard not to allow!  However, what in Excel have you created to make it a useful tool?  Any special tracking systems?

Inspections are based off your level of expertise.  I've renovated 3 of my units and come from a commercial construction background.  I typically skip but I will still pay $75 to a HVAC and pool maintenance vendor to get a review on the units.  I also know I'm going into houses will be renovated, so I budget extra for any maintenance items.

I recommend to all my friends to spend the extra $400 on your $10-20k invest.  It could also save them money in negotiations and pay for itself depending on what they find.

Interesting.  What's the hardest task it optimizes?

For me, always having a goal and willing to do whatever to accomplish that.

I am very lucky to have amazing parents and my dad always throughout 'cashflow' ever since I was little, so I grew up with cash is king.  However I was using those sayings even before I knew what they actually entailed, and luckily it matched what I actually wanted!

Some good responses!  Entertaining.

Luckily I haven't had the worst of luck, however on my first rental renovation my tools were stolen during the day. I had been workin afterhours. It made the rest of the project more difficult as I had to hire my cousin to help me finish and also use his tools. That unfortunately put me behind schedule.

And every time I try installing flooring on my own, it's a miserable experience.

Curious what rental-oriented technology people are using that they absolutely cannot live without now.  This could be tenant screening, rent collection, bookkeeping, etc.