An investor using real estate to retire early says his rents fell in 2026, but he still increased his profit by focusing on 3 expenses.
Brannon Potts has watched rents soften in North Texas over the past few years. Still, "my overall profit has gone up," said the investor.
Brannon Potts, a real estate investor, has built a diverse portfolio of single-family and multi-family properties to achieve early retirement. Despite recent rent declines in North Texas, Potts has managed to boost his profits by focusing on reducing three significant expenses: mortgage payments, property taxes, and insurance.
Potts has refinanced several of his mortgages when interest rates dropped, refinancing at a 5.3% rate and reducing his interest costs. He has also challenged property-tax assessments, lowering his tax bills from 16.6% to 11.7% of his rental revenue over the years. Additionally, Potts has increased his insurance deductibles and started shopping for better policies, cutting his insurance costs from 6.2% to 5.2% of his rental revenue.
By tracking and analyzing his expenses using common sizing, Potts identifies cost-cutting opportunities and maximizes his returns.
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