Accountant Explains: Buying Your First Apartment Building
Episode Summary:
Real estate investing is an incredible journey, often filled with unexpected lessons and transformative experiences. In this post, we dive into the inspiring story of Ian Cruz, a CPA-turned-real estate investor, who transitioned from house hacking in the Bay Area to mastering 1031 exchanges and scaling into commercial multifamily properties in Cincinnati.
If you’ve ever wondered how to make the leap from analyzing deals to building a real estate empire, Ian’s journey is packed with actionable insights and lessons.
Ian’s Early Steps: From Numbers Guy to Real Estate Investor
Ian started his career as a CPA, crunching numbers at PwC before working at a venture capital firm. As someone who lived and breathed financial analysis, real estate eventually caught his eye as a vehicle for building long-term wealth. His first exposure came through helping his mom navigate a complex 1031 exchange in the Bay Area, converting a single-family property into a six-unit multifamily building.
This experience planted the seeds for Ian’s passion for real estate and his belief in leveraging properties for cash flow, tax advantages, and appreciation.
Key Takeaway: Even if you start with a background unrelated to real estate, transferable skills like financial analysis can give you an edge when evaluating deals.
House Hacking in the Bay Area
House hacking was Ian’s first personal venture into real estate investing. In one of the country’s most expensive markets, he found creative ways to make his primary residence work for him financially. By purchasing a duplex and renting out the other unit, he offset his high cost of living while gaining firsthand experience as a landlord.
Lesson Learned: No matter how expensive your market, house hacking is a powerful way to break into real estate investing and start building equity.
Scaling to Out-of-State Investing in Cincinnati
While living in the Bay Area, Ian noticed the stark contrast between property prices in California and cash-flowing opportunities in markets like Cincinnati. He dove into out-of-state investing with a six-unit multifamily property, applying his CPA expertise to underwrite deals and analyze cash flow.
His first Cincinnati deal wasn’t without challenges—finding financing as a first-time, out-of-state investor required persistence and creativity. Yet, the lower entry costs and strong rental demand proved to be worth it.
Key Takeaway: Scaling out-of-state requires building relationships with local agents, property managers, and contractors. Your network is everything when investing remotely.
From Solo Deals to Capital Raising and Partnerships
As Ian gained experience, he realized the power of partnerships. He joined forces with like-minded investors to pool resources, analyze deals, and tackle larger opportunities. This evolution led him to co-found Elevate Capital, where he helps others invest in high-performing properties.
One notable deal involved an eight-unit multifamily property in Cincinnati. By raising rents and improving management, Ian and his partners significantly increased the property’s net operating income, boosting its valuation.
Lesson Learned: Real estate is a team sport. The right partnerships and networks can amplify your results.
The Power of 1031 Exchanges and Value-Add Strategies
Ian’s expertise in 1031 exchanges allowed him to help his family defer capital gains taxes while scaling into higher-performing properties. He also mastered value-add strategies, such as renovating units and increasing rents, to maximize returns.
For example, his first Cincinnati deal saw rents rise from $3,700 to over $6,200 per month after implementing strategic improvements.
Key Takeaway: Understanding tax strategies and value-add opportunities is essential for scaling your portfolio and building long-term wealth.
Why Cincinnati?
Ian’s success in Cincinnati highlights the importance of picking a market that aligns with your goals. With strong rental demand, Fortune 500 companies, and steady economic growth, Cincinnati offered Ian the ideal mix of affordability and opportunity.
Pro Tip: Research local markets for population growth, job stability, and rental demand to identify where your investments will thrive.
Final Advice for New Investors
Ian’s advice for beginners is simple:
Network Constantly: Attend meetups, connect with other investors, and find accountability partners.
Leverage Your Skills: Identify what makes you unique—whether it’s financial analysis, market knowledge, or relationship-building—and use it to add value.
Start Small, Think Big: Don’t wait for the perfect deal. Get started, learn from the process, and scale over time.
Want to Take the Next Step in Your Real Estate Journey?
If this post resonated with you, let’s connect! Find me on Instagram @cashflowsaga to chat about your financial freedom goals—I’d love to help however I can.
Looking for more resources? Download my free investing tools or explore my 1:1 coaching program, Rental Property Investing 101, to fast-track your success.
Stay committed to the journey, my friend. Your future self will thank you! 🚀
