First investment, small multifamily or storage units?

[Nigel Bearden]

I'm having a difficult time finding a duplex or four plex that fits within the 1% rule. I'm wondering if a storage unit property wouldn't be a better idea. Seems like there would be fewer expenses each month.

I have $30,000 to put down.

[David Dachtera]

@Nigel Bearden,

If the 1% rule works for you, test it against the actual numbers and see if it holds true. Just as a double-check.

Storage units are a different critter. It's cash flow without live-in tenants, trash or toilets. You do still deal with rents, evictions, etc. If you can get into an existing facility, so much the better. Otherwise, you're looking at buying raw land and developing it into storage units.

I've seen some numbers suggesting the supply of storage may be short of the need / demand by about 34% depending on the area. The research on that is a different critter, also. Near here (within 5 miles), the area ranges from under-served to not served at all. 10 miles north of here it's rather different. 

I wouldn't say no, but I would say go into it with your eyes open.