storage units for sale, good idea???

Question

Hi! I am new to real estate, I have one rental property that I lived in for 3 years and am now renting out, I rent my current living space because it is closer to work. There are storage units for sale in a nice area on 1.66 acres with a 5000 sq ft building, large garage. The storage units are all full, all but the garage because the owner was using it to store his RV. Can someone send me a message and give me advice on how to even start the process of maybe trying to buy? if its a good idea? good buildings? I can send the link in message, thanks in advance!

Dan H. · Answer

I consider @henry Clark the best poster on BP on storage units (or teak farms).   He may respond, but even if he does not I suggest you look at his posts.   He had a thread where he went into great detail about how to develop storage units.  I feel this thread was like giving the secret sauce but do you think anyone followed it correctly?   He had posts recently on his 19th and 20th storage unit developments (but one was more an expansion than development).

My son is 23 and on BP.   I have suggested to him to follow less than 5 users and Henry is one of the ones I suggest he follows.  I bet he has not.   My son is doing ok (most would think better than ok as he lives in a high b area in expensive San Diego and has solid net worth), but with his experience he could be rocking it with just a little more discipline.

If you are interested in storage units, read Henry’s posts on storage unit.  He has achieved some crazy ROI (this coming from someone that has achieved very good ROI).

Good luck

Denise Supplee · Answer

Welcome @Kelsey Coffman

Before getting too excited about the property itself, I'd want to understand the numbers. How much income is it producing, what are the expenses, and what kind of occupancy history does it have? One thing I've learned over the years is that a property can look great on the surface, but the numbers usually tell the real story.

Ellison Frick · Answer

I agree that consulting an experienced agent in that area would be the best idea. However, I also think that storage facilities have many benefits. In general, they have a lower maintenance cost and seem to have a steady demand for the most part. I think a storage facility in a busy area would be a decent investment.

Janice Carter · Answer

@Kelsey Coffman Before making an offer on a storage facility, I would recommend speaking with a local real estate agent who specializes in commercial properties for guidance and representation. Commercial properties can be excellent investments but they are evaluated very differently than residential properties. A good commercial agent can help you review the financials, negotiate the deal and identify any red flags before you move forward.

Kelsey Coffman · Answer

@Janice Carter thank you for the advice! I will do that!