Parking Space Investment

[Mark Andrews]

I'm ready to make my first real estate investment and became intrigued by the concept of purchasing a parking space for lease. I am willing to accept a lower dollar return in exchange for a lower equity requirement and lower risk due to maintenance. I have read some articles that speak favorably about this sort of investment and some that are unfavorable because the returns are too low. My income proforma shows that I can get an unleveraged IRR of around 9.3% (11.6% when leveraged at 50%). Frankly, this doesn't sound so bad compared to the return I could get on a 10 year bond. I appreciate any feedback, comments, or advice.