BiggerPockets

I've been an investor in one deal where we bought a 281 unit mini-storage. Yes, we bought a large chunk of change to the table. More like 30%, about $900K. We had some money held back for some immediate work and some for working capital. Some time back, I spoke with a lender about the repair reserves. There was a number, but is was only a hundred or two per unit.

The deal will have to qualify. They will want a DSCR (debt service coverage ratio, goes by other variations) that meets some criteria. Don't know exactly what that is these days. Probably well north of 1.2. That ratio is the NOI divided by the debt service payments. They will want to see some data to support your NOI number.

You may have to give a personal guarantee and qualify to some extent. On that mini-storage, the prinicpals had to give personal guarantees. That doesn't mean you have to have enough income to make the payments, but it does mean you can't be a total deadbeat with no income, no assets and a 500 credit score.