Advice on rental/storage unit investment
Hello all I am considering purchasing my first real estate investment property and wanted some advice on whether it is a smart initial investment or not.
Details of the property: Property consists of a 29 unit storage unit made of cinder block and metal roofing and two single wide trailers. One of the trailers is already being rented for $500 a month and is in decent condition. The other is a 4 bedroom trailer that could likely bring $600-700 per month and possibly more given the larger size. The larger trailer will need some new flooring, a roof, some fascia, and painting. I have the means to do the painting and flooring myself but would need to hire someone for the roof.
Per the owner 1/2 of the storage units are rented but I am unsure of the price. In the area similar units range from $25-50/month. The storage units are all in pretty good shape but we would need to install a new access gate and opener for 24/7 access. Right now the owner has to come down and open the gate each time.
The location is in a small rural town and is just off the main street in town. Rentals here are in high demand and it is a lower income area so people usually aren't too picky about the type of home they can rent.
The asking price is $165,000 however the owner is quite motivated to sell so I likely could get it for lower than this. I would need to finance the deal but do have ~40,000 cash that I could put in to it. I would prefer to hold on to some of that cash however for the repairs noted above.
Any advice/thoughts on this would be much appreciated.
