Overview of 2 Duplexes Will Fund My Retirement (That’s It!)
In this BiggerPockets Real Estate Rookie episode, Eric Kaci breaks down how he used house hacking to buy two duplexes in expensive Los Angeles markets and build a long-term retirement strategy around them. Instead of chasing quick cash flow, he focused on appreciation, mortgage paydown, and equity growth in neighborhoods with strong demand. The episode walks through his first deal’s heavy rehab, how he handled a vacant-unit negotiation, what his monthly numbers look like today, and why he’s now looking to scale more aggressively with Midwest BRRRR deals.
Eric’s Background and How He Got Into Real Estate
Before investing
- Started in retail, then luxury retail at Louis Vuitton during college
- Later moved into medical device sales and relocated from the East Coast to Los Angeles
- His higher W-2 income gave him room to start investing
What sparked his interest
- Learned about house hacking and BiggerPockets through personal finance podcasts around 2021
- Began studying real estate as a way to build wealth beyond his salary
The First Deal: Jefferson Park Duplex
Why he bought it
- A century-old duplex built in 1924
- Had been sitting on the market for over 90 days with a price drop
- He liked the “good bones” and saw upside in an up-and-coming neighborhood
- The property was in a historic preservation overlay zone, which many buyers likely saw as a burden, but Eric viewed as an advantage
Purchase and financing
- Bought for $665,000
- Used an FHA loan with 3.5% down
- Put roughly $23,000 down
- Paid about $5,000 in closing costs
- Came in around $30,000 all-in before renovations
Vacant-unit negotiation
- Because both units were occupied, he had to get one unit delivered vacant to house hack
- He asked for a vacant unit in his offer
- The seller agreed and used cash for keys
- The tenant payout was around $25,000–$30,000
Rehab surprises
- Once the furniture was gone, the unit looked much worse than expected
- Found mold, dirty surfaces, worn floors, and other hidden issues
- The unit ended up needing a much bigger renovation than planned
Renovation costs
- Rehab scope came in around $26,000
- With fixtures, appliances, and mold remediation, total cost was closer to $40,000–$45,000
- Mold remediation alone was about $6,000
Key Lessons From the First Property
Historic zoning was manageable
- He couldn’t change the exterior architecture without approval
- Roof, siding, paint, and windows needed review
- In practice, the process was easier than he expected
Mold wasn’t a dealbreaker
- Eric emphasizes that many investors overreact to mold
- His advice: understand the fix, learn the cost, and hire the right contractor
- In his case, mold was localized and fully remediated
He leaned on relationships
- His realtor helped connect him with contractors
- He also found design help through neighborhood connections
- A contractor/designer helped modernize the space while preserving character
The Second Deal: Hollywood Duplex
Why he bought again
- After nearly two years in the first duplex, he had built enough stability and confidence to move on
- A strong W-2 year gave him the ability to buy again
- He wanted a property in a more central, higher-demand area
Why Hollywood made sense
- Much closer to the main LA rental “bubble”
- Better location for tenant demand and rentability
- A property with a better rental profile and less rehab needed than the first one
Financing and risk management
- Put 12% down on the second duplex
- Chose a larger down payment to get closer to break-even
- Saved more for reserves because of his experience with unexpected repairs on the first property
- Kept roughly $20,000–$30,000 in reserves
Current Numbers Across Both Duplexes
Monthly carrying cost
- Total monthly mortgage payments: about $9,600
- First duplex: $5,000
- Second duplex: $4,600
Current rent roll
- One unit rents for $2,500
- Other units rent for $1,550 and $1,750
What that means
- Right now, Eric is covering roughly $3,800/month across the portfolio
- He sees that as acceptable because:
- he lives in one unit
- the tenants are paying down the mortgages
- the properties are appreciating
- rents can be raised gradually over time
Long-term outlook
- Once his current unit is leased out, he expects his out-of-pocket cost to drop to around $1,000/month
- His goal is not short-term cash flow, but long-term wealth building
- He views the two duplexes as future retirement assets
Strategy Shift: Moving Toward Midwest BRRRR Deals
Why he’s changing approach
- LA investing is effective but slow and capital-intensive
- With his current strategy, he can only acquire a new property every 1.5 to 2 years
- He wants more scale and better margins
What he wants instead
- To use private money and buy lower-cost properties in markets with stronger spread
- He’s now studying Memphis and Detroit
- He’s working with investor/mentor Brian Waters to learn a new playbook
Why those markets
- Much better acquisition-to-value spread than Los Angeles
- More room to BRRRR and recycle capital
- Easier to scale compared with expensive coastal markets
Main Takeaways for Rookie Investors
1. House hacking can work in expensive markets
Even with high prices, Eric made the math work by using a bigger down payment, buying carefully, and thinking long term.
2. Don’t overfocus on immediate cash flow
His plan is centered on equity growth, paydown, and appreciation—not just monthly profit.
3. Older properties always need reserves
Unexpected issues like mold, termites, siding, foundation, and windows are part of the game.
4. Learn to ask for what you want
Eric got a vacant unit because he asked for it.
5. Use your W-2 strategically
A strong income can help you qualify and buffer risk while you build your portfolio.
Final Thought
Eric’s story is a strong example of buying “boring” or overlooked properties, making them work through house hacking, and using time plus appreciation to build a retirement plan. His two duplexes may not maximize monthly cash flow today, but they’re laying the foundation for long-term financial freedom.