Real Estate Rookie Podcast – Episode Summary

Episode Title: This Matters More Than Cash Flow (Most Rookies Ignore It)
Hosts: Ashley Kehr & Tony J. Robinson
Release Date: January 16, 2026
Podcast: Real Estate Rookie, BiggerPockets

Episode Overview

In this Rookie Reply episode, Ashley and Tony address three crucial questions from new investors:

1. Do you need a Realtor to buy an investment property?
2. Is it wiser to put 40% down and self-manage to increase cash flow?
3. What to do if a seller-financed borrower vanishes, leaving their belongings?

The hosts break down legal, strategic, and emotional considerations for each topic, sharing personal experiences and actionable advice for newer investors aiming for their first few deals.

Key Discussion Points & Insights

1. Do You Need a Realtor to Buy an Investment Property?

Reference: 01:11 – 08:23

• No, it's not required:

  • Tony: “I don't know of any states that require you to use an agent to transact on real estate.” [01:45]
  • Ashley notes attorneys are sometimes required (e.g., NY), not realtors.

• Dual Agency & Off-Market Deals:

  • Ashley: Most people use at least the seller's agent (sometimes as a dual agent).
  • Both hosts are unclear if a buyer can purchase via MLS without using any agent; they crowdsource the answer from their YouTube viewers. [03:21]

• Value of Working With an Agent:

  • Tony's first deal benefitted from an agent’s local knowledge and contractor contacts:
    “My agent as a first-time investor was incredibly valuable... Overall knowledge of the market and their connections to other people.” [03:51]
  • Ashley uses her agent for comps analysis, area insights, and negotiation strategies but analyzes deals herself. [04:53]

• Critical Takeaway:

  • Know what support you need: market insight, negotiation, network, or analysis.
  • Ashley: “You have to know going into it what do you need help on... you could get an agent that has no idea what the rental comps are and you needed help on that and then it's not going to be as valuable to you as you thought using an agent was.” [06:38]

• Selecting an Investor-Friendly Agent:

  • Tony: Ask questions about their investor experience and what percentage of their deals are for investors:
    “If it was 1 out of those 60, okay, that's kind of telling. If it was 49 out of those 60, then maybe that's a different story.” [08:13]
  • Use tools like BiggerPockets Agent Finder.

2. How Much Should You Put Down? (40% Down and Self-Manage—for Cash Flow?)

Reference: 11:28 – 16:41

• Analyzing “Better” Cash Flow:

  • Ashley highlights apples-to-oranges comparisons when it comes to cash flow, e.g., different down payments, self-managing, and markets.
    “You have to look at other factors to actually determine how these deals are comparable... Look at the cash on cash return and not just look at the cash flow.” [12:22]

• Cash on Cash Return vs. Cash Flow:

  • Tony: “For Abdul to say very matter of factly that it’s better to put down 40% and self manage, that’s a very case by case basis.” [13:49]
  • If high down payments are needed in your market, consider changing market, strategy, or property type.

• Emotional/Personal Side:

  • Ashley: “Would you actually sleep better at night if you had more equity in the property and did put that 40% down... there's definitely an emotional piece.” [15:32]
  • Be honest about your willingness and ability to self-manage.

• Plan for Change:

  • Ashley recommends underwriting a deal as if a property manager will be hired—even if you plan to self-manage.

3. What Do You Do When a Seller-Financed Borrower Vanishes?

Reference: 19:12 – 26:20

• Scenario: Borrower defaulted, foreclosure finished, but left belongings in the property in Northern California; borrower is known for frivolous litigation.

• Legal Process and Cautions:

  • Tony draws a parallel to his hotel storage unit situation:
    “We had to … put a public notice in a newspaper … a very clear legal set of steps … to dispose of their items without breaking the law.” [21:00]
  • Most states require following legal steps (eviction, notification, etc.), especially in tenant-friendly states like CA and NY.

• Eviction, Even without a Lease:

  • Ashley: “If there are people occupying that property, you have to actually evict them... You can’t just kick them out and throw their stuff out.” [22:22]
  • Even for non-lease ‘tenants’, eviction (not just foreclosure) may be required.
  • Collect written evidence that the prior owner has vacated (email, e-sign, or notarized letter). [24:08]

• Squatter Laws:

  • Ashley: “You could literally go into the property and just say, hey, I live here now… still the owner would have to go and evict you.” [25:35]

Notable Quotes & Memorable Moments

• On Finding the Right Realtor:

  • Tony (08:13):
    “If it was 1 out of those 60 [deals]… that's kind of telling. If it was 49 out of those 60, then maybe that's a different story.”

• On Cash Flow Analysis:

  • Ashley (12:22):
    “Why look at the cash on cash return and not just look at the cash flow that the property is generating.”

• On Emotional Aspects of Investing:

  • Ashley (15:32):
    “Would you actually sleep better at night if you had more equity in the property and did put that 40% down?”

• On Squatter/Eviction Laws:

  • Ashley (25:35):
    "You could literally go into the property and just say, hey, I live here now… still the owner would have to go and evict you."

Timestamps for Key Segments

• [01:11] – Do you need a Realtor to buy investment property?
• [03:21] – Dual agency, off-market deals, and regional quirks
• [06:38] – Finding the right agent for your needs
• [08:13] – Questions to ask a prospective agent
• [11:28] – Is bigger down payment and self-managing “better” for cash flow?
• [13:49] – The limits of blanket rules about down payments
• [15:32] – Personal and emotional considerations for leverage
• [19:12] – Addressing a ghosted borrower post-foreclosure (seller finance)
• [21:00] – Storage unit parallel: following legal process for belongings
• [22:22] – Why eviction is usually required, not just foreclosure
• [25:35] – Squatter laws—even without leases

Tone and Takeaways

The hosts keep a light, encouraging, and practical tone, emphasizing flexibility, due diligence, and self-awareness for new real estate investors. They openly admit when they don’t know specifics but offer clear guidance on what to ask, who to consult, and where to find solid resources (agents, books, legal counsel).

Final Thoughts

This episode demystifies several “rookie” tripwires—including relying solely on cash flow numbers, misunderstandings around realtors, and risks when tenants or borrowers vanish. The recurring message:
Do your homework, tailor your team and strategy to your needs, and always check local laws before acting.

For further help, find an investor-friendly agent, read “The Self-Managing Landlord” (available in the BiggerPockets Bookstore), or consult with a qualified real estate attorney for legal situations.