Epic Real Estate Investing - Discover an Untapped Market for Cash Flow | Zach Zimmer | 1298

Episode Date: April 11, 2024

Are you ready to unlock the secrets to financial freedom through real estate investing? In this captivating episode of the Epic Real Estate Investing Podcast, hosted by Mercedes Torres and Matt Theriault, you'll embark on an enlightening journey through the world of real estate investing. Broadcasting from the vibrant city of Las Vegas, Nevada, Mercedes Torres shares her wealth of knowledge on turnkey properties and profitable markets for generating consistent cash flow. Join her as she delves into the intricacies of property management and the crucial role of ground teams in ensuring success. But the real gem of this episode lies in the introduction of Zach Zimmer, a seasoned investor hailing from the under-the-radar market of Canton, Ohio. Zach's journey from a corporate job to a thriving real estate entrepreneur is nothing short of inspiring. Through his company, Cash Flow Savvy, he offers turnkey properties and invaluable insights into the lucrative markets of Canton and Akron, Ohio. Discover the essentials of real estate investment as Zach breaks down market analysis, highlighting the unparalleled benefits of investing in these thriving regions. From the stability of the market to the impact of major developments like Amazon's expansion, Zach provides practical advice that's essential for any investor looking to secure sustainable returns. Join us as we uncover the secrets to success in real estate investing and learn how to leverage local expertise for profitable ventures. Whether you're a seasoned investor or just dipping your toes into the world of real estate, this episode is a must-listen for anyone seeking financial freedom through strategic investment. So, what are you waiting for? Hit play and start your journey to financial independence today! P.S. Whenever you're ready to go deeper and further with your real estate investing, looking into my partner program to help you get your first deal might be the move... take the first step here for free 👉 https://epicearnwhileyoulearn.com/ Learn more about your ad choices. Visit megaphone.fm/adchoices

This is Terio Media. Are you ready for the ultimate real estate invest-in episode? We're combining the power of subject-to and turnkey income properties into one epic show that will have you drool in over the potential profits. First up, we're spilling the beans on three subject-to real estate invest-in secrets. We'll discuss how to structure deals, work with agents, and even wholesale subject-to properties like a boss. And if that's not enough to get your heart racing, we've also got five uplift and stories

to remind you that there's more to life than just making money, but wait, there's more. We're also talking about turnkey income properties today. Imagine properties that are already rehabbed and rented, so all you have to do is sit back and collect the cash flow. It's like buying a car that's already been washed and detailed, except it's a house. So whether you're a seasoned investor or just starting out, this episode has something for everyone. Don't miss out on the opportunity to learn about two game-changing strategies in one episode. Let's get this party started. Hey, strap in. It's time for the epic real estate investing show. We'll be your guides as we navigate the housing market, the landscape of creative financing strategies and everything you need

to swap that office chair for a beach chair. If you're looking for some one-on-one help, meet us at rei-aise.com. Let's go, let's go, let's go, let's go, let's go, let's go, let's go. Let's go. Hello and welcome. Welcome to the Epic Real Estate Investing podcast. My name is Mercedes Torres and I am lucky enough to be partners in crime with Mr. Matt Terrio, the guy who created the epic real estate empire. Now, I'm back in the studio in Las Vegas, Nevada. Weather is getting nicer, real estate is starting to pop again. And I'm just going back to what I love to do the most, which is education, real estate education, and teaching you how to create financial freedom in your world. Now, as you know, I often do a segment called Ask Mercedes, where you send in your real estate

related questions and then I do my best to answer them. And if I cannot answer them, I do the next best thing and I go find an expert in the area like I did last week with our 1031 exchange specialist. But when I do that, I just bring them on to the show and then just have them highlight the topic. And so the question I got today that I'm going to address is a question. that I get regularly about our turnkey properties and how to make those properties perform for you. And the question is, what markets are the best markets for cash flow? And then how do I find those markets? Well, for me and in my experience, it's been two things. Number one is the numbers. And, do the numbers make sense? Does the purchase price and the rent ratio produce a solid return? What are the

property taxes like and and what is the job market like and is that market growing. But really, the most important thing that you hear me preach about is the team on the ground. Because at the end of the day, you can have the best looking property on the block and you can have a quote unquote awesome investment. But if the investment doesn't perform for you, if you don't have paying tenants that are paying you your rent, then what? What's the point? So today, I decided to bring on one powerful, very unassuming market in Ohio that few people know about, and it really flies under the radar. So I'm going to bring on a local, a native, a powerhouse in that market. And he's an investor and a bulk investor in Canton, Ohio, so that you can learn,

evaluate and determine if that market makes sense for you. So I am honored to introduce you an awesome addition to the cash flow savvy team who has an extraordinary story. I mean, from being a full-time employee in the rat race to becoming successfully unemployed and running his own real estate operation and now providing awesome turnkey properties to cash will savvy. Now, my guest, he is a husband, he is a dad, he is a full-time real estate investor born and raised in Ohio that is going to give us the juicy details of why this market is so sensational. So, ladies and gentlemen, allow me to introduce to you the amazing Zach Zimmer

from Canton, Ohio. So Zach, welcome to the epic real estate investing show. How the heck Are you, buddy? Hey, thank you. I mean, what an introduction there. I mean, now I'm scared. Everybody's going to be, you know, I'm focused on my area in my backyard. But wow, just an amazing introduction. Glad to be here and talk about this kind of under the radar area that retired me from a director job in just six years of buying properties.

And there's plenty. There's more to come. There's more good stuff happening here. It's just a great area besides kind of the weather for about six months of the year, but what a great place to invest here at Ohio. Yeah. You're talking to a Puerto Rican, California girl that just recently moved to Las Vegas, who does not understand what it's like to have negative two-degree weather, you know,

in Ohio. So we will certainly talk about the weather. I'm honored to have you on the podcast just because I loved your story that I'm going to have you get into right now. By the way, I will be your promoter. I will be that one hollering. So whenever you need an introduction, just call me and I'll be happy. I love it. I love it. So, Zach, let's start. I know that when you and I connected, one of the things that really drew me to you is just your beginnings, your humble beginnings, because I know that you were working for corporate America. You had a really good position and you gave that up. So tell us a little bit about your backstory and how real estate came to fruition for you.

I was raised on the standard education model, right, before that we hear from our parents, that we get in the school system. of go get your degrees, right? Get a degree, get a good job, get another degree, get your promotions, bleed for your company. I remember actually saying that, I think, at one time during an interview, like, oh, I bleed for my company. You tell me to get on a plane, you know, I say how far. And I remember pitching that back before kids, before my wife, when that was it. Like, where do you want me to fly to? What plant do you want me to improve? And that was what I thought was going to get me to this level. okay, I'm going to become a vice president. And, okay, once I really found out, like, okay,

vice president in operations has no life, right? You're up at 4 in the morning. You get plants shutting down at 10 o'clock at night. But that's the kind of the path that I was brought into coming up through engineering and operations and then, you know, getting my MBA. And, yeah, looking for promotions, running around the office, you know, what do they call those like 10 traits that cost you nothing? Like being on time, being excited.

You know, I was running around the office, doing all those things. And then I started to, I heard about real estate in 2012. And I was actually given Rich Dad Poor Dad in 1999, the year after it came out by a guy trying to recruit me into multi-level marketing. Which, right, Robert Kiyosaki is a fan of some multi-level marketing. And right, you can debate those back and forth. There are some skills that come with an independent business owner that gets you, maybe, that first step into kind of controlling your destiny. But I remember reading that book, and I thought there were some cool lessons in there.

But when I brought those up to my parents, right, a union worker, a general motors, retail worker, right? Oh, that's okay. You know, there was never any support of that philosophy, of that thinking. And when I started to hear about real estate, you know, in 2012, I remember that book. I think I pulled it back out, read it then, and I was hearing about these guys here in Ohio. at the company I was working at the time. So the Timken Company is about, well, back then it was about a $2 billion company,

headquartered in Canton, Ohio. And that's in the steel and bearings sector, making ball bearings. And, you know, there were some guys there that were buying these duplexes, buying duplexes with their bonus. They'd get a bonus each year, go and buy a duplex or go buy a single family. And I was like, okay, how are they doing that? And does that make sense? And I remember I kind of put some numbers together and I went to my dad.

And I said, Dad, you know, give me a loan. I want to go buy this Canton City duplex. And my dad's, no way. You know, you're not to. Nope. Turn me down. And I was kind of put back. And thankfully, right, there's a plan, right?

There's always a plan for us. And he turned me down. And that's what turned me eventually into single family focused. And, you know, had he given me the. that loan at that time. My first property being a D plus duplex probably could have went bad and I could still be working a job a day had that been my first start. But him telling me no, got me, you know, more analyzing properties, talking to real estate agents and then landed in 2012 on two single families in, so it's the Akron area. And in our conversation, Akron Canton, same thing.

The properties, and we'll get into all the details because I owned, you know, I did own 70. Now I've sold down to 40 and backup, but it's all in this Canton to Akron market, which is Stark and Summit counties, which covers just under a million people between Stark and Summit County. And that was my first property. It was actually two single families on Huntington Fix, 30-year loans. And I spent my whole bonus from Timkin, which is about $15,000 on the down payments and closing costs of those two different single families from both banked.

Got it. And so how did you know how to do the research for it? Did you just figure it out? And how many mistakes did you make? I mean, here's the amazing thing. Like, no mistakes. Like, my first two were phenomenal. I mean, I remember studying back then we were looking on Craigslist for rentals.

Zillow wasn't out yet. So rentals were listed on Craigslist. So I could look on the MLS. All right, this property is $45,000. Okay, it can rent for $8.50. 30-year fixed loan at Huntington. Oh, we're going to cash flow. $350, $400 a month after property taxes, insurance, debt service.

And I was like, yeah, you know, it makes sense. And we're just talking about that. My wife and I, like, that was the leap. Because that road that we took there, traditionally, what do people do when they get their bonus. They go spend it, go on vacation and go buy a car. New patio, new furniture, all these things. We easily, that's what we normally did, right? 15 grand, we're going to go do some new stuff. But I convinced her, nope, 15 grand, we're going to go buy two rental properties. And from there, it just became this path of learning how to do it, how to rehab, or get the right

people and systems in place to eventually start buying. I bought about a house a month. for about three to four years. So, yeah, you know, 12, 15 properties a year all through that, 13, 14, 15. Yeah. Tell me about your learning curtains, Zach. When you were doing that yourself and you had no guidance, you didn't have any mentors. I mean, all you did was read the book, Rich Dad, poor Dad. What were the biggest lessons during that era that really got you to see, oh, my God, there's a more efficient way of doing it? So there was continued books. So anything for Rich Dad, Poor Dad, Advisors are great high-level books. They're not real tactical, right, but they're great to open your mind and learning. So whether it's tax-free wealth with Tom Wheelwright,

or retire young, retired rich, cash flow quadrant, all those are great to start to change your thinking. And then it was just lots of how when you're working out physically, right, your hands get calloused. When you're investing in properties, your mind. Mine's got to get calloused of, oh, an eviction, oh, this tenant's ignoring me, oh, a fire. You're going to have to go through those. And eventually you get to the point where it's like, oh, yeah, this property's trashed. It needs a 20-yard dumpster. It's horrible.

I'll have it rented in a week. You know, you just know. And especially in this market, that is the truth. Like, I remember a horrible eviction. Place was trashed. Basement was flooded. dog poop all over the house. We turned it around in a weekend.

It was redded on Monday. There's so much demand. Yeah. So for our newer listeners, tell me what's just one valuable lesson that you learned very early on when you started doing this that would be beneficial

to that person that was, that's listening to us thinking, I can't do this. I don't want to deal with an eviction. I don't want to deal with a fire. I don't know anything about, Akron, Ohio. I live in Los Angeles, California. What was that one lesson that was life-changing for you? Based on my background in W-2 world of continuous improvement, right? I was ingrained in Lean Six Sigma and

situational leadership, leadership development, right? The one thing that we had to do, delegate. And remember, at this time, I have a job, and I have 17 engineers, seven plants around the country that I'm responsible for Arizona, Canada, New Hampshire. I got facilities, operations all going on. I don't have time to go deal with these things. So I had to put the right people in place and empower them and delegate. And I didn't go look at properties. The realtor would go look at it. The contractor would meet her there. He would know how much things were going to be. I would put the offer by the property. Realtor hand the keys to the contractor. Contractor repair it. I just rent it out. So I knew I was non-value-added, right? In continuous improvement, when you're evaluating process,

you have value-added steps and non-value-added steps. And honestly, me going to look at a property was not a good use of my time. My contractor could go, the realtor could go if it was going to be a flip, right? The realtor is responsible for all those choices and what it's going to sell for. And so I just got out of my own way. Yeah. That is so critical. You got out of your own way. And I can't tell you how many people I speak to, Zach, that call us one year. Four years later, call us and are still in the same place because they just don't get out of their own way. And I always say, I created a whole operation that does all of that for you. Just get out of your own way.

What a valuable lesson. And something else you said about that is you know, you're a very system kind of a guy. You know because of your background in the corporate world, if you will, you had the systems, the processes, delegating. And, I mean, it's the same thing in real estate. It's a system. It's processes. It's real estate. If it worked once and you can prove that it worked, it could likely work again.

So what a concept. Awesome. Okay. So thank you for sharing that. Just really quick for my own information. What was your biggest takeaway from the book, Rich Dad, Poor Dad? I think of this biggest thing there, it's to start. There's two different paths, right?

You know, his rich and his poor. And it did kind of resonate with me because I had a father and a stepfather. And my father was the business owner. And my stepfather worked on the line at General Motors. And so, whereas it wasn't the same as those two things, I did have two very different worlds. the suit behind a desk and the jeans flannel working on the line. And so I'm reading this book and those are two different dads, two different stories.

I've got my own two different dads. And even though you can read those things, it really didn't hit me until I was living it. And I refer to it like Keanu Reeves in The Matrix, right? In the movie Matrix, they're all congs, right? And he's offered the choice, the red pill or the blue pill. You take the red pill, your mind's open, you will understand and see this matrix going on, right outside these doors, people hustle into work. You take the blue pill, you'll go back to sleep and you'll never think any different. And I have that discussion all the time with my best friend who I met in engineering at one of the companies, a valve and fitting company up just north of Akron.

And we were both on that, let's get promoted, let's be plant managers, let's work at night shift as a plant manager, then let's Let's get to corporate director and all these things. And once he got, you know, I took the pill and he started to learn for me and now he has it. And yeah, he's like, he's not motivated to go and do all these things anymore. He's trying to buy more properties. He's trying to get into private equity. He's trying to do all these things because he's taking the pill. And he sees this crazy hustle bustle to go and spend your time, you know, your healthiest 30 years of your life out there for someone else and hope.

you have some pension or some big 401k nest day to send you through the last 25 years of your life. Wow. The fact that you got to live the real rich dad, poor dad in your own sense, I'm sure has been the reason why you're doing what you're doing. So let's talk about exactly why we're here because, I mean, I've been investing for a little over 17 years. So I'm very familiar with a lot of markets. I happen to love the Ohio market for a number of reasons. But I want you to dive in a lot more into why this market is producing such a great return for my buyers. I mean, the return is amazing. The growth is stunning.

Let's just talk about your market in itself. So you mentioned Akron and Canton like are one in the same. Let's talk about just the proximity so people get an idea. How far is it from Cleveland, Ohio, which is kind of the norm? Yep. So Cleveland, Ohio, which a lot of people say it's the north coast of the country, right? We have the most waterfront on the north of any state in the United States. So it's just a neat little tip about Cleveland.

But we are about, Akron would be about 40 minutes south from Cleveland. Okay. And then Canton is another 15 to 20 south from Akron. So Canton being, you know, about an hour up to Cleveland. So that Canton to Akron would be Stark County covering Canton, Masselin, Louisville, Lane, and then you have Summit County encompassing Akron, Farallon, Cuyahoga Falls, other cities, and they're practically identical. Summit County being a little bigger county, encompassing Akron, which is a little bigger city.

But, yeah, it's very similar in terms of rents. And, you know, let's just talk real world. Between me and my five friends, we control about 400 single family homes in Stark and Summit County. And when we were buying, we didn't know. We just assumed all real estate was this good of returns, right? You know, we weren't buying 2010 to 2016. There wasn't a lot of good communication of where the best cap rates are in the country. And, you know, had we known, maybe we even would have bought more, had we known, like, oh, you can't do it.

this out in Arizona in Colorado, in Florida. They're getting single digits and we're getting, you know, 20 plus percent returns back when we were buying then. And we just did it because, hey, it made sense. And when the national publications, bigger pockets and Redfin, you know, probably late 20 teens started the publicizing, okay, hey, you're seeing Cleveland because it's a big market, right? You're seeing Cleveland pop up and maybe they're showing you Akron. But Canton still stays because probably because of its population, it still stays off the radar of getting some of those big publications to pick up on it. And that's completely fine. Yeah, but I mean, let's just dissect that, you know, despite the population. I mean, there isn't 200 people in your town.

I mean, there's, I think, between 70 and 80,000 people. So regardless, we, everyone still needs a roof over their head. Oh, yeah. Yeah, like I said, you're covering about just under a million people from from canton into acry in those two counties okay well there you go okay so then it's not like it's a one little town with one church and one liquor store okay no no awesome let's talk about what what the numbers look like you know i've done a ton of research and i always look for that for that rental where i know that the purchase price and the rents are going to give us a solid return. And then of course, I factor in the taxes, the insurance, all of that. And then I really dive into what, you know, what the rental rates are for our typical bread and butter kind of house.

So I like the idea of, you know, three bedrooms minimum, one to two baths, thousand square feet. So tell me a little bit about what we are doing in Akron and in town. Yeah. So just like you said, you know, the same properties are the same properties I own and the same ones that are great turnkeys, three-bed. I really don't go after two-bed unless it is a finished basement. And then, you know, that's still an option here. There's a third bedroom and appraisal, maybe not, but in terms of a rental, it's still going to rent for that same three-bedroom, 1150, 1,200 a month rent. And so that's a way where maybe we'll find some more value to get, you know, one that has a finished basement. But yeah, definitely three-bed. Love garages. Maybe, you know, they're only on maybe

30 to 40% of them. But the carports are a nice perk that we can throw up. And so I like to do that when I don't have a garage, just throw up these augured in, like mobile home augured carports that can't be blown away. Definitely off-street parking. I mean, there are some communities where kind of these older towns that rent really great, but that they just have street parking. And I know, you know, if I was a tenant, I'm not going to be happy with that for very long. I mean, maybe I would take something like that if that's always available. But as soon as the market might have a little less demand, I can find something with a driveway or garage. So I really don't like the street parking. And there's not a lot of those, but they're out there occasionally.

So yeah, your three-bed driveway, hopefully a garage. Traditionally, they're capes with one bath. You can get another half bath. That's definitely a nice bonus. Get another price $50 a month. But yeah, your 3-1, 1,200 square foot built somewhere in the 40s to 60s is kind of the bread and butter in all our portfolios and the properties that turnkey nice. Got it. So let's talk about that.

At a property that we're describing, a three-bedroom bath or a three-bedroom property with one bath, maybe one and a half bath, that rents for $12.50, what would be the price point of that property. So I think you're going to see this $1.50 to $12.50 rent and this $120,000 purchase price with basically new siding, new windows, new bass, new kitchens, and new roofs, unless it's within like the last five years. We're in an area of hail, right? And these storm chaser companies love to give you new roofs on your insurance. So there are lots of roofs that get replaced in here. after, you know, we're buying them and they were already replaced, right? Because the storm went through

here and the insurance company guys all ran out and got folks new roofs. So, but yeah, you know, pretty well all done up for that price. Awesome. Thanks for sitting tight while we pay our light bill. We'll be back right after this. Stop spending countless hours on busy work and focus on growing your real estate business and maximizing your return. Base lane is a comprehensive property management that caters to the needs of landlords and real estate investors by offering a suite of financial tools designed to simplify the management of rental properties. The platform provides features like dedicated banking services, automated bookkeeping, rent collection, and insightful analytics to help landlords manage their properties more efficiently.

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Let's get you some more. Back to the show. So let's talk about the garage, because I get that question quite a bit. So in many areas that I invest in, garages are, they're a plus, but they're not an absolute deal breaker to attend. What is your take on a garage? You mentioned cardboard. Do you really feel that it affects the rentability of, the property. So this is one of those, right, where we have to get out of our own head. I have to

have garages, right? And there's these things we think, but we're not the type of tenant that's in these homes. And I had always, probably the first 20, 30 homes I bought, I wanted garages, had to have garages. And then, you know, the more I network with other investors and basically found out, okay, you know, you could probably get 50 or $100 more a month with a garage, but you're tenant pool is normally never, never any lower. They're still going to need a lawnmower. They're still going to need these things. So to the point that we talked about with street parking, I think the more that you have a garage or a car pour and the easier they can store things out of, because we still do get some snow here, I think the longer they're going to stay there because

they'll have, okay, they can load up their garage, put stuff under the car for it, be protected from the weather. So it is a nice perk, especially I think it's going to help your longevity, your tenant longevity. Yeah, it's a perk, but it's not a deal breaker, if you will. Our typical tenant stays on average for three years and eight months. And what I found is when we have that, they'll stay for three years. So we might lose eight months, but the reality is it's not a deal breaker, especially if a majority of the homes in that area, they don't have garages. So it's It's not abnormal for them to rent a house with no garages or a cardboard instead of a garage. Let's talk about our rehabs.

The quality of our rehabs are top-notch. And you mentioned everything that we kind of look for to upgrade. So what does a standard rehab look like for our turnkey properties at? So for the turnkeys, you know, we are targeting properties that are the most distressed, that can be everything new. So for something that can only be acquired, maybe higher in the five-figure range, right, okay, that's just going to be a rental in my portfolio, right, with dated things, but they're still all functional versus a property that has been foreclosed on that's what's got maybe asbestos, that asphalt siding. Those are the ones that are targeted for, yep, new windows, new roof, new siding, new bass, new kitchens. And so those are the ones that makes sense versus something that's more of a turnkey.

maybe a turnkey, draw a rental in, you know, more for our portfolio just to throw people into dated things versus sell to a turkey out-of-state where they want all those things new to know that, hey, I'm not going to have to worry about my furnace, my windows, any of those things for 10, 15, 20 years. That's fabulous. And in addition to that, I mean, the rehab that is done is top notch because our property management team is super on point about making sure that everything is done to the team. I love it. Awesome. So, okay, so we talked about the price point. We talked about what the quality

of our rehab is. We talked about the quantity of bed and baths. Now we know about the rents. What are property taxes like in this area of Ohio? So, to one more thing on the quality before earlier. So you met Steve, right, head of operations rehab. So X on. Amish and ex-Omish employ Amish and you're not going to sign better quality than the Amish, the work ethic, the quality. And so that's who's doing these roofs. That's who's doing the sign. That's who's doing the carpentry work.

It is ex-Omish and the quality is just great. Yeah, it absolutely is. And I've worked with several Amish, love them, love their ethics, love their work, workmanship, quality, amazing people. and was like, don't go back. We're happy. I mean, nothing against Amish. They left for a reason.

And I just take them in when they decide to, you know, work. Yeah. So that is very true about just that community, very driven, very hardworking community. It does quality work. So nothing back to see about them. Okay, so let's jump into the taxes. Because what I'm getting at, Zach, is I really want to dive into what the return looks like right now. So if I get the taxes, I have an idea of what the insurance is.

tell me what the property tax is going. So this is where we will talk a little bit different about Canton and Stark County versus Akron and Summit County, because this is probably the only difference or the main difference, lower property taxes in Canton, Stark County. So that's encompassing Canton, Massland, Lewisville, any of these ones in Stark County. And on that value of a house, you're going to be looking at around that $100 to $125 a month. Now, on that value of house in Summit County, so particularly in Akron, is probably going to be closer to 175, 185 a month. Now, in Maslin, you're even probably going to be below 100 a month.

In Barberton, same thing, probably around a little under 100 a month. So we have communities, and so that's why I target some of these ones with lower property taxes. Your rent really won't be lower. they may have a little less demand, but rents are pretty close. And so that's really that only difference between Akron and Keanu. Well, it sounds like the property taxes are between like $1,300 a year to about $2,02100 a year. And on $120,000 to $150,000 property, renting at $12.50, my quick and dirty math while you were talking, I did it. that's looking at about between a 7% return to an 8.5% return based on what the rates are doing today.

Rates are about a 6%ish between 6% and 7%. So I calculated that at a rate of 6 and a quarter. Roughly speaking, we're at a return of almost 8% cash on cash return. Now, this podcast is dated. Things change on a daily as of today because I'm often quoted, You said it was an 8% return and it's really at 6.5%. The reality is the return is stunning compared to money sitting in your Bank of America or Wells Fargo checking account making less than 1%. If you're making anything over 5%, I mean, that's already a win. And you're only talking about the one way that real estate pays you, right?

You're talking about that cash on cash versus depreciation tax fruit, everything that takes it closer to 20 in total. Correct. I'm just talking about the cash on cash return. I've broken down in the four other areas where we make money holding property. Of course, that's appreciation, depreciation, amortization, cash flow. I mean, it's amazing. And I'm just talking about the cash on cash ROI. So that's fabulous. Okay. So I noticed just based off of I went and did a little bit of research of what your market is doing. And it looks like the Canton-Akron Airways. is starting to grow quite significantly. I've seen a lot of things being done by the county, by the city. I heard Amazon is coming to town. So tell me about that because I know from personal experience, I also invest in Birmingham, Alabama.

I have over 30 rentals in Birmingham. And Amazon ended up showing up about three years ago. And the value of our properties after Amazon was built, established, and everyone was already employed, it was literally about a 15% increase in equity in just one year. And this is Birmingham, Alabama. So this happened, I believe it was, 2021, I believe it was. But yeah, huge difference. my investors were like, oh my God, my property appreciated and you said it wasn't going to appreciate it.

I had no idea it was going to appreciate that much. So don't quote me as to how much it's going to appreciate, but it was insane. Insane. So tell me about when that's scheduled to happen. Where is Amazon going to be situated? What are they looking to employ? So I think I heard the numbers around 1,000 to 1,200 people. And that is getting completed. I think it's being completed. It's all basically buttoned up, I believe. It started in 2022, finished, I believe, end of 23. And so what I'd be curious to investigate with Birmingham is like, so when the big boy comes, it's like with Intel, right? Intel is building the biggest plant in the country outside of Columbus, right? The biggest manufacturing center in the entire country. And it's

it's not just going to be the Intel jobs, it's going to be all the suppliers. So you're probably going to get 3, 4X the jobs of all the suppliers who come to support Intel. So I'd be interested to see in Birmingham how that looked with, okay, Amazon comes, but then who else comes because of Amazon? So if we're adding in these 1100, 1,200, 200 jobs and they are all set now, what other ancillary things or who else follows Amazon? Like there are companies that follow Starbucks. and follow Chipotle. When they sign up in a plaza, that's where they want to go, because they know they do their homework.

And so it'll be interesting. It's got to be already somewhat factored in of anybody who's come for those jobs, those thousand jobs, or it's helped people, because we haven't really had anybody really exit out of the big companies that are here between FedEx and First Energy and Timkin and Summa and Shears, the potato chips,

and Cignt, you know, K jewelers, J.B. Robinson jewelers. I mean, all those headquarters are here. Good Year Manufacturing. I don't know of any significant exits. So, you know, it's got to be just growth and the more the big stuff that comes. And the perks, you know, I noticed it was like a couple months ago when I went to order something on Amazon and it said it could deliver it between three and seven o'clock today. I'm like, I didn't need this lamp today when my daughter broke her desk lamp, but I'm going to get it today because we have Amazon, you know, 15 miles. away. Oh, wow. That's crazy. That's so cool. Very cool. So that's scheduled to happen. Do you know

when that's opening? So I believe the distribution center is open now. So it finished an end of 23. Okay. Oh, okay. So that's, yep, that's how I'm saying. Like, now we get these lamps and anything. You know, we get same day Amazon deliveries. But it's, you know, the other thing you may have seen is the Hall of Fame Village, which is what still, that's by far much, much bigger. That's an entire, I mean, I'm going to call it Disney World, but a small, small Disney World encompassing like 60 acres at the Pro Football Hall of Fame, which is in Canton, Ohio. Did you say 60, 60, 60 or 16? Yeah, 60. Yeah, it's a water park. I mean, they have rides. They put in a whole giant. I don't know how many soccer fields, but a big indoor. So soccer tournaments like Ohio regional soccer. tournaments, concerts. We just went and saw Bill Burr, the comedian was there. Carrie Underwood's coming. We're getting big stuff in Canton because of everything they've just done there at the

Hall of Fame. I love it. I absolutely love it. I smell growth and that just means more real estate and that just means a little bit of everything for everyone. It's perfect. Awesome. Okay. So we talked about our property types. We talked about the quality of our turnips. We talked about the quality of our turnkey property. Talked about the growth of the city. Why would somebody want somebody that lives in, you know, San Diego or someone that lives in Washington or someone that lives in Chicago, why would you say Canton is one of our better turnkey products that we offer? So it's got a conservative court system, right? We don't allow squatters. Police will throw them right out on the street. We just had that scenario about six weeks ago in a property that was being

turned over. It had been vacated by tenants. Squatters had jumped right in and actually filled the fridge. It was pretty funny. They had robbed Walmart and filled the fridge. So there was beer and stakes and all these things. And when the property manager went there to, you know, check on these, the exiting. That's when they found what was going on. And this was actually the first time. time we've dealt with squatters and the cops do there they waste no time you know oh wow get the hell out you know took them out and got them written we were like man we got steaks and beer that's fabulous to hear that that's what's the eviction time like in canton so canton better than acron because acron is bigger as we talked about you're probably about a three-week lead time from filing to court

to be actually be in court and then your set out would be seven to ten days so you're probably a total of about five weeks from serving notice in. Akron, you're probably going to be at seven to eight weeks. That sure as heck beats the time frame in beautiful California. Oh, I've heard. Very good. Very good. Awesome. Okay. Anything else we need to hear about this amazing market before we wrap up here? It's a great, I like to say, you know, I don't like the rocket ship people on Facebook. Rocket ship, rocket ship. I call myself like a train, right? Just keep going, keep going. And that's kind of what I would say about this market is, you know, short of the government printing $9 trillion like they did, and then our properties flew up 20% here, 25%. You're not going to

see crazy appreciation in this market, but if you're going to cash flow and with these investments of other companies coming here, I think they're doing their due diligence and saying, hey, this is going to continue to be strong for jobs for all those headquarters. Ohio has a Republican governor and they're heavy in business, incentivizing business. And so I think we're still going to see jobs and we're still going to see good business perks to keep jobs here and keep demand on rentals. Yeah, that's very, very truth. I will say I'm in, you know, 10 markets and really strong in six of them, but this by

far is a very, very strong market with a solid team. So, Zach, I cannot thank you enough for your insight, for your stories, for your sharing. I know that you've made a difference for at least one real estate investor listening. And I think that's why you and I do this is because we want to make a difference some way, somehow in the financial future of our listeners. So thank you so much for your time. If you want more information on our cash flow properties in specifically Canton and Akron, Ohio, please feel free to go to cashflow savvy.com. That is savvy with two Vs.

Hit the contact us. You can download our investor's guide to passive income. And you can also download our free investor guide that gives you the top 10 markets of all of the United States, which includes our markets in Cleveland and Canton, Ohio. Zach, thank you so much for your time. Any finishing final words to our listeners? No, thanks for having me. You're a bright, shining personality. Appreciate the conversation. Oh, you are so welcome.

Thank you for your time. And to our listeners, please remember that real estate is the final frontier where the average person has a legitimate chance at creating real wealth. So till next week, have a great week and make sure you remember that cash flow is sweet. And that wraps up the epic show. If you found this episode valuable, who else do you know that might too? There's a really good chance you know someone else who would. And when their name comes to mind, please share it with them.

And ask them to click the subscribe button when they get here and I'll take great care of them. God loves you and so do I. Health, peace, blessings and success to you. I'm Matt Terrio. Living the dream. Yeah, yeah, we got the cash flow. You didn't know home for us. We got the cash flow.

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