Real Estate Rookie Podcast: How to Build an Out-of-State Investing Team in Any Market (Rookie Reply)

Date: January 23, 2026
Hosts: Ashley Kehr and Tony J Robinson (BiggerPockets)

Episode Overview

This episode tackles some of the most common—and pressing—questions for new real estate investors, especially those considering investing out of state. Hosts Ashley Kehr and Tony J Robinson break down:

• The realities of minimum cash flow,
• Whether to invest in rental property before buying your own home,
• How to build a reliable out-of-state team as a brand-new investor.

Delivered in the lively, supportive, straightforward tone typical of Real Estate Rookie, this episode is loaded with practical, beginner-oriented advice and candid insights from the hosts' own investing journeys.

Key Discussion Points & Insights

1. What’s the Reality of Minimum Cash Flow?

Timestamps: 00:00 – 06:41

• Main Question: "Is $150/month in cash flow enough for your first property, or should you aim higher?"

• Tony's Personal Story: Tony recalls his first deal in Shreveport, LA, which netted $150/month after all expenses. What made it a win was that he invested none of his own capital—making it an "infinite return."

  "To me, that was an amazing deal because I had zero dollars in that property... So for me, 150 bucks, I had a PM [property manager]... it was 150 bucks in basically free money that I was getting."
  —Tony J Robinson (01:17)

• Key Takeaways:

  • The quality of cash flow is “relative”—it depends on the market, the amount of capital invested, and investment goals.
  • Don’t get stuck in “analysis paralysis” trying to find a ‘perfect’ first deal.
  • Know your market: Some offer more cash flow, others offer appreciation. Be realistic about what’s possible depending on where you invest.
  • True cash flow must account for vacancies, repairs, CapEx—not just "rent minus mortgage."

    "Are you actually calculating the true net net cash flow?"
    —Tony (03:29)

  • Adequate reserves are critical: If unexpected repairs hit early, low cash flow properties can quickly become cash-flow negative.

2. Should You Buy a Rental Before Your First Home?

Timestamps: 06:41 – 13:32

• Main Question: "Should I buy an investment property before buying my own primary residence?"
• Ashley’s Take: Do what you’re ready for—if you have the capital and capacity, you don’t have to choose between investing and homeownership.
  • Many lenders accept job offer letters (not just a full year of income) for loan approvals.
  • Combining strategies, like house hacking (buying a duplex, living in one side), can be a smart move:

    "You could do rent by the room in a property too. I know everyone's sick of talking about house hacking, but I think this would be a great scenario..."
    —Ashley Kehr (11:13)

• Tony’s Strategy: "It doesn’t have to be either/or. Just make it an 'and'—go do both."
  • Example: Buy a property each year as a primary, then turn it into a rental as you move. Over a decade, that stacks up:

    "...in a decade, you've got 10 properties with really good long term fixed debt that are hopefully cash flowing pretty well."
    —Tony (11:51)

• Be Aware: Keep an eye on your debt-to-income ratio (DTI) so you qualify for future loans.

3. Building an Out-of-State Investing Team: Where to Start

Timestamps: 15:52 – 27:41

• Main Question: "How do you build a reliable out-of-state team, and in what order should you hire them?"
• Tony’s Experience:
  • Sequence: Lender → Real Estate Agent → General Contractor → Property Manager.
  • Why start with the lender? The lender sets the "buy box" (i.e., what you can buy), which helps your agent narrow the search.
  • Property Manager (PM) often comes in before closing, can help vet the property for rental-readiness, and may even do final walkthroughs post-renovation.

    "The PM came in... [and] helped me finish off the rehab to make sure it was rent ready. When the rehab was done, the GC literally took the keys, drove them over to the property manager's office."
    —Tony (17:23)

• Ashley’s Advice:
  • Use resources like BiggerPockets to find market-specific agents, lenders, and other team members—don’t wait until you have a deal.
  • Research upfront is crucial, especially in smaller markets where key team members (like cleaners for STRs) might be scarce.
  • Key to vetting: Ask open-ended questions—“How many investor clients do you have?” not just “Do you work with investors?”

4. Red Flags When Assembling Your Team

Timestamps: 20:15 – 27:41

• For Agents:
  • Ask what percentage of their deals are with investors—if it’s low, they may not know how to assess deals for cash flow, rentability, or deal with the unique needs of investors.

    "[An agent] should be able to tell you: Hey, this is a really nice neighborhood, but I very rarely see things cash flow over here..."
    —Tony (21:23)

• For Lenders:
  • Be wary if lenders send disclosures with rates/fees not previously discussed, or don’t present your options transparently.

    "This lender just put in what they thought was best... and included an underwriting fee that wasn’t discussed or negotiated ahead of time."
    —Ashley (22:22)

  • Use government guides to understand all line items in your loan estimate before signing.
• For Contractors:
  • Make sure they have investment property experience, not just residential upgrades for homeowners.
  • Seek multiple references, ideally ones you source yourself (from PMs, lenders, other investors).

    "If the PM’s like, 'You definitely don’t want to go with John Smith down there...' – talk to other folks inside that community and see what their take is on that person as well."
    —Tony (26:15)

• General Principle:
  • When investing out of state, cross-verify team member reputations locally since you don't have local context.

Notable Quotes & Memorable Moments

• On Analysis Paralysis:

  "That first deal is going to bring you so much value by propelling yourself into your real estate investing journey."
  —Ashley (02:31)

• On Combining Strategies:

  "You’re already used to living with people because you’re living with your parents. So at least you’d get your own side of the duplex..."
  —Ashley (11:18)

• On Team Building:

  "Try and get as many references as you can...from talking to other folks in the community—agents, lenders, property management companies..."
  —Tony (25:37)

• On Starting Now:

  "The best time to buy a real estate deal is yesterday, and the second best time is today."
  —Tony (12:55)

Timestamps for Important Segments

• Minimum Cash Flow Realities: 00:00–06:41
• Rental or Primary First? 06:41–13:32
• Building an Out-of-State Team (Order & Red Flags): 15:52–27:41

Final Thoughts

The episode demystifies three huge hurdles for new investors:

• Understand what to look for in cash flow (and accept imperfect deals at first),
• Get proactive about blending your investing and homeownership goals,
• Start building your investing team before you need them and learn to ask the right questions.

Delivering empathy, practical advice, and a few personal stories, Ashley and Tony offer encouragement—and a solid roadmap—for rookies braving their first deals, especially in unfamiliar markets.