After falling behind on retirement savings, a Gen-Xer turned to real estate. He explains how he built a 7-figure portfolio starting with $15,000.
Real estate investor Brannon Potts, who uses a "build-to-rent" strategy, got started with about $15,000 of his own money.
Brannon Potts, a Gen-Xer in his late 40s, turned to real estate to build a 7-figure portfolio after falling behind on retirement savings. He began his journey in 2020 with a modest $15,000, which covered the down payment and closing costs for three lots. Potts uses a build-to-rent strategy, where he constructs rental properties on land he purchases and holds them for cash flow.
His first project, a fourplex, cost around $447,000 to build and was appraised at $595,000 after completion, generating equity of approximately $148,000. Potts attributes this success to building properties that appraised for more than their construction cost. He built wealth without additional cash contributions from himself.
His subsequent builds include a triplex, several single-family homes, and multi-family rental units, bringing his current portfolio to 14 properties valued at about $3.5 million based on appraisals. Potts estimates that the portfolio has more than $1 million in equity.
To continually improve his property returns, Potts focuses on tenant preferences such as split-bedroom floor plans and additional workspace and storage in garages. He also upgrades to impact-resistant shingles to reduce insurance costs, which have saved him around $275 in the first year. By setting aside about 8% of his rental revenue for vacancies, repairs, and future expenses, Potts maintains a cash reserve of approximately $60,000, aiming ultimately to cover six months of his portfolio's total expenses.
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