This Matters More Than Cash Flow (Most Rookies Ignore It) (Rookie Reply)

Summary of This Matters More Than Cash Flow (Most Rookies Ignore It) (Rookie Reply)

by BiggerPockets

24m•January 16, 2026
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Overview of This Matters More Than Cash Flow (Most Rookies Ignore It) (Rookie Reply)

This episode of The Real Estate Rookie (hosts Ashley and Tony) answers three forum questions about: 1) whether you must use a realtor to buy investment property and how to pick one if you do, 2) whether putting 40% down and self-managing is better than financing with a property manager, and 3) what to do when a buyer you seller-financed ghosts you and leaves possessions behind after you foreclose. The hosts focus on practical decision criteria (market knowledge, networks, return metrics, legal process) and recommend concrete next steps and resources.

Key takeaways

  • You generally are not legally required to use a realtor to buy an investment property, but local practices and closing requirements (e.g., attorney involvement in some states) vary—check your jurisdiction.
  • A good agent can be extremely valuable for market knowledge, local quirks, and a vetted vendor network (contractors, property managers, insurance).
  • Don’t evaluate deals by cash flow alone—use cash-on-cash return and compare opportunity cost of the capital you would deploy.
  • Putting 40% down and self-managing can be the right choice in some markets or for some buy-boxes, but it’s not universally best. Consider alternative markets, property types, or strategies before committing large equity.
  • When a buyer/tenant has abandoned property after a foreclosure, follow local legal processes (eviction, public notices, disposal/auction timelines) and consult an attorney before disposing of belongings.

Questions answered (concise)

  • Do you need a realtor to buy a second/investment property?

    • No statutory requirement in most places; some states require an attorney for closings (not the same as an agent). In practice many buyers use either the seller’s agent (dual agency) or their own buyer’s agent.
    • For remote investing or if you lack local knowledge, an investor-friendly agent offers big value: neighborhood insight, comps, negotiation context, and vendor referrals.

  • What to ask and look for in an agent?

    • Use investor-focused channels (e.g., BiggerPockets Agent Finder).
    • Ask: number of transactions last year; what percent were investor clients; local investor experience; knowledge of rental comps and negotiation norms; vendor introductions.
    • Ensure their strengths match what you need (market intel vs. transactional help vs. deal analysis).

  • Is it better to put 40% down and self-manage?

    • Depends. Evaluate cash-on-cash return, opportunity cost of the down payment, market alternatives, buy-box, and strategy (single family vs small multifamily, long-term vs mid/short-term, BRRRR, etc.).
    • Factor in whether you can/want to self-manage and whether the down payment would drain reserves or prevent other opportunities.
    • If you might later hire a manager, model that cost now to see if the deal still works.

  • What to do when a buyer ghosts after seller financing and leaves belongings behind?

    • Don’t just dispose of things. There are legal steps to follow which vary by state (public notices, eviction procedure, timelines for auction/disposal).
    • Likely steps: consult an attorney; initiate eviction/holdover proceedings if required; document attempts to contact; use third-party service to serve notices; get written acknowledgment if possible (email or notarized vacate notice).
    • Follow state-specific statutory process for abandoned property — some jurisdictions require public notices and sale/auction procedures to avoid liability.

Practical actions & checklist

  • If buying without an agent:
    • Confirm local closing rules (attorney requirements, dual agency rules).
    • If remote, strongly consider an investor-savvy agent for local intel and vendor referrals.
  • Choosing an agent:
    • Ask transaction volume and investor percentage.
    • Request local investor references and examples of similar deals.
    • Clarify what they will provide (comps, negotiation advice, vendor introductions).
  • Evaluating down payment vs leverage:
    • Calculate cash-on-cash return and compare to alternative uses of the capital.
    • Model both self-managing and outsourced management scenarios.
    • Assess emotional tolerance and reserve levels (how comfortable are you with leverage?).
    • Consider moving to a different market or asset type if your target market requires high equity to cash flow.
  • If you foreclose and occupant/owner items remain:
    • Immediately consult a local real estate attorney.
    • Document occupancy status and neighbor reports.
    • Attempt written contact (email/text) and keep records.
    • Follow legal eviction/abandonment procedures: notices, public postings, waiting periods, auction or disposal per law.
    • Use third-party process servers to document service attempts.

Notable quotes / insights

  • “There is value in working with an agent—especially if you’re investing long distance—for market knowledge and connections, not just the transactional parts.”
  • “Look at cash-on-cash return, not just monthly cash flow. Putting a lot of equity into a deal can reduce your return on capital.”
  • “You can’t just throw someone’s stuff away—there’s usually a legal sequence to follow when someone abandons belongings after foreclosure.”

Resources mentioned

  • BiggerPockets Agent Finder (recommended to find investor-friendly agents)
  • BiggerPockets book: The Self-Managing Landlord
  • PropStream (lead lists, comps, skip-trace, batch dialer — sponsor)
  • BAM Capital (tax-efficiency / multifamily investing — sponsor)
  • NREG (insurance for investors — sponsor)
  • Consult a local real estate attorney for eviction/abandoned property procedures

Short recommended next steps (for each listener type)

  • New, remote investor: Use an investor-savvy local agent; get their vendor referrals; verify comps and negotiation standards.
  • Cash-constrained investor debating 40% down: Model cash-on-cash vs opportunity cost; test other markets or asset types before locking large equity.
  • Seller-financer who now owns repossessed property with belongings left behind: Stop, document, and call an attorney before disposing; prepare to start eviction/abandonment procedures per state law.

This summary captures the episode’s main guidance: agents are optional but often valuable for market knowledge and networks; evaluate deals by return on capital rather than raw cash flow; and follow legal procedures (with counsel) when handling abandoned property after foreclosure.