When Erik Caci relocated to Los Angeles for a career in medical device sales, he found himself in a housing market notorious for astronomical home prices and steep rental rates. While most real estate rookies enter the market aiming to accumulate portfolios of 10 or 20 rental properties, Caci quickly realized his path to financial freedom would look different. Armed with a stable W-2 income and a strategic vision, Caci determined that just two properties—four rental units total—would be enough to secure his long-term retirement.
Appearing as a guest on a recent episode of the Real Estate Rookie podcast hosted by Ashley Karr, Caci detailed how he successfully navigated the hyper-competitive Los Angeles market. Despite the city’s prohibitive costs, he managed to purchase two separate duplexes with significantly less than the standard 20% down payment, leveraging house hacking and creative negotiation to build a foundation for long-term wealth.
Shifting From Retail to Medical Device Sales
Before diving into real estate investing, Caci’s career journey started in retail during high school and college. While pursuing his education, he broke into luxury retail, working for Louis Vuitton. That experience shaped his foundation in client development, relationship management, and interpersonal communication.
Eventually, those skills transitioned into his current W-2 career in medical device sales. After spending his first year in Los Angeles establishing his footing and building a higher income, Caci began exploring personal finance podcasts. Around 2021, a podcast episode referencing house hacking and BiggerPockets introduced him to the broader world of real estate investing.
His initial foray into property ownership began modestly on the East Coast. While living in New Jersey and anticipating a long-term presence in the New York-New Jersey market, he purchased a condominium. However, a career relocation to Los Angeles materialized just four or five months later. After briefly weighing whether to rent out the condo, Caci ultimately decided to sell it after six months. Because the New Jersey market appreciated during that period, he broke even, escaped without major financial losses, and gained a foundational understanding of property transactions and running basic numbers.
Tackling the Los Angeles Housing Market Through House Hacking
Arriving in Los Angeles meant facing a notoriously expensive housing landscape. Caci knew that if he wanted to invest locally, house hacking would be the mandatory strategy. The primary question became whether he could afford a multi-family property or if he should focus on a single-family home with rented rooms. Ultimately, he aimed for a multi-family asset to maximize the math and cover a portion of the mortgage.
His search led him to Jefferson Park, an up-and-coming neighborhood in Los Angeles. Scrolling through Zillow nightly, Caci tracked a century-old duplex that had languished on the market for over 90 days, accompanied by a notable price drop. Built in 1924, the 100-year-old property possessed good architectural bones and historic charm, drawing him in despite needing a complete cosmetic overhaul. Furthermore, the property was situated within a Historic Preservation Overlay Zone (HPOZ). While many investors shy away from HPOZs due to strict regulatory oversight regarding exterior modifications like roofing, siding, paint colors, and windows, Caci viewed it as a distinct advantage. He recognized that the historic designation would protect the neighborhood’s character from rapid, unwanted high-rise development. Additionally, neighbouring West Adams had recently experienced the highest property value growth across all of Los Angeles between 2016 and 2024, signaling strong gentrification momentum for Jefferson Park.
Negotiating Vacant Delivery and Managing Historic Renovations
Because Caci planned to house hack the Jefferson Park duplex, he needed one of the units to be delivered vacant upon closing. Multi-family properties in Los Angeles are almost always fully tenanted, making vacant units a rarity. Without initially involving his realtor, Caci proactively stipulated in his early inquiries that an offer was contingent on a vacant unit being delivered. Recognizing that the property had sat unsold for months, the seller agreed and utilized a common local practice known as "cash for keys." The seller paid between $20,000 and $30,000 to expedite the tenant’s departure within a strict 45-day escrow timeline.
To preserve his capital for upcoming repairs, Caci abandoned his initial plan to put 5% to 10% down and opted for an FHA loan with a 3.5% down payment, totaling roughly $23,000. Combined with closing costs, his total cash-to-close before renovations landed near $30,000, aided by credits negotiated during inspections for sewer line and foundation work.
Once inside, the true condition of the 650-square-foot, two-bedroom unit became apparent. Stripped of furniture, the interior revealed significant wear, including mold on the bedroom walls and ceilings, requiring a complete gut-renovation before he and his partner could move in. Seeking professional design and construction help, Caci connected with a high-end residential designer named Adam through a referral. Adam adjusted his usual multi-million-dollar project scope to help redesign the compact unit for modern rental standards, incorporating a laundry machine, a dishwasher, and space optimization.
The cosmetic renovation and mold remediation cost approximately $45,000 total, with the mold removal alone accounting for around $6,000. While mold often frightens rookie investors, Caci emphasized that thorough research and professional remediation make it a manageable hurdle rather than a dealbreaker. By tackling repairs that other buyers overlooked, he secured a high-potential asset in a competitive market.
Scaling to a Second Hollywood Duplex
After living in the Jefferson Park property for nearly two years—during which he addressed exterior siding, painting, windows, and termite treatments—Caci closed a major deal in his medical device sales career. This financial milestone allowed him to purchase a second house hack: a duplex located in Hollywood, closer to the central hubs of Beverly Hills and West Hollywood.
Unlike his first purchase, the Hollywood property required less heavy rehabilitation. Eager to bring his monthly housing costs closer to a break-even point, Caci opted for a 12% down payment to reduce his initial mortgage burden. The property also featured a distinct advantage: a driveway and a detached two-car tandem garage equipped with air conditioning and recessed lighting, presenting future bonus space potential for artists or remote office use.
Across both properties, Caci’s total monthly mortgage obligations sit at $9,600—$5,000 for the Jefferson Park duplex and $4,600 for the Hollywood duplex. With three of the four units currently rented out bringing in a combined $5,800 monthly, Caci covers a remaining monthly deficit of roughly $3,800 while living in one of the units. Once his current personal unit in Hollywood is fully renovated and rented out at market rate, his out-of-pocket monthly contribution across four units in the heart of Los Angeles will drop to approximately $1,000.
Rather than fixating on immediate cash flow, Caci views his real estate strategy through a long-term lens. He relies on his stable W-2 career to absorb the monthly equity-building payments, treating the deficit as a forced savings plan. With tenants paying down the bulk of the debt and Los Angeles real estate consistently appreciating, Caci estimates that holding these four units through a 30-year horizon will establish a secure retirement fund without the need to acquire dozens of properties.
Pivoting Toward Remote BRRRR Strategies
Having established a solid foundation with his Los Angeles portfolio, Caci is now looking ahead to scaling his investing activities. Recognizing that acquiring multi-family properties in Southern California is capital-intensive and slow-paced, he has begun exploring single-family BRRRR (Buy, Rehab, Rent, Refinance, Repeat) strategies in Midwestern markets like Memphis, Tennessee, and Detroit, Michigan.
By working with experienced mentors and utilizing private capital, Caci aims to leverage his renovation experience in markets where profit margins offer faster scaling opportunities. As he prepares for this next phase, his journey demonstrates how a clear long-term vision, disciplined budgeting, and a willingness to tackle misunderstood property issues can turn a high-priced urban market into a viable path toward financial independence.