Starting out- Wichita area Storage Units

[Byron Jones]

Hi Everyone, 

I'm looking to start investing in storage units in the Wichita area. We currently live and hour south of Wichita but are up there most weekends. Is there anyone from the area that invests in facilities? Would the Wichita Area REI be good to join and network there or are there other associations in the area that would be better. Looking forward to hearing from alL of you and learning. Thanks!

[Henry Clark]

Wichita has some heavy hitters already.  But it looks like there is room for growth, but you will need to be strategic.  Looks like the market can handle about 32,000 units.  Recommend you build.  Most of the big hitters you won't be able to buy out.  The others will be in the $1mm to $2mm range if they have 200 units or more.  Do the following:

1.  Google- Wichita Self Storage-  Look on the map.  Look for "holes" where there is no storage.  Then look for zoning within that area that allows storage.  2 acre minimum.  Also do Sparefoot and switch to the map to see competitors and prices.

2.  Go against the grain.  Don't do traditional storage, or do just a little.  For example, google Loopnet Wichita Industrial.  Look at the 4035 South Broadway property as an example.

a.  I would check if you can do Cargo Containers for storage.  Cheaper, add as you need, no property tax, quicker payback.  Lower price point competition. Also for taxes you can write them off in year one.

b.  Also build Contractor units for plumbers, electricians, landscaping.  You would have plenty of land, which these folks like for parking and outside storage and turning.

c.  RV/Boat storage.

d.  Check on any epa issues, looks like a current or former car salvage yard.

If your looking for smaller investments, I would check out every storage location from your place south of Wichita, up to Wichita.