Great mystery solved - why self storage biz ROCKS...

[YY1]

...if you're the owner.


The previous owner of the property is finally moving out of the unit they've been in for three years.


This pic is indicative of the contents.


I saw them carry out-

a very small window a/c unit

a coffee table

two end tables

two lamps

a small chest of drawers

a Christmas tree

a weed eater

numerous open boxes of books and clothes.

Total of rents paid over the three year term- $2,700.00!!

 

[ws27]

They are a gold mine, you just need to figure out how to expand.

If you ever add up what they make your mind would be blown. I used an EZ Mini storage here a while back, and one day, I drove around and figured out they made about $225,000 per MONTH! It was sitting on about maybe 5 acres.

 

[Speedbird]

What do I see peeking out of unit 21?

 

[67GTX440]

With the glut of storage containers in the US that come from China and never go back, I always though that would be the way to go. Find a piece of land and line them up! I understand you can buy a 20' storage container for $1,200 bucks. You can't buy a metal storage shed for that!

 

[Cranky]

That's about what I paid for a 2 bedroom house and a large one car garage in 1970 and then a buddy and I split the rent! Not bad for a couple of guys making top wages back then lol

 

[YY1]

The problems right now are-

Over saturation- there are five other facilities within 2 miles, including two independents.
(however, NONE are automotive friendly)

Construction cost- next time you drive by one, count the roll up doors, and as you count, say two thousand, four thousand, ect.
You get to a quarter mill pretty fast, then see if you can add up the concrete slab cost.

If you can find an older one like this with a motivated seller....there are two nearby, but they are somewhat ridiculously priced.
Quarter mill for 12 units and $450,000 for 20 units, albeit 20x30 units.

If you have to pay for management that can seriously eat in to profit. I do my own.

I do give a long term tenant with three units a discount to mow the grass and show units if I'm at work or otherwise unavailable.

I'm also looking at a 20' or 28' container, to put over a run-off area. If I can get that to go, I'll use that and that for parts and it will free up a unit for income.

- - - Updated - - -

Most of the value for me is the five car garage that I'm not paying for.

The modest income is kind of icing on the cake, but it's nice.

If I could find another property with the same "numbers", I'd sure do it again.