Starting Out In Self Storage

2 Replies

Hey fellow investors! My name is Karsen, I am currently a college student and I have been looking around for multifamily (duplex, tri, and quad) and stumbled across a deal for a piece of property in a small town. The property has a chain link fence that is in good shape around the whole lot. It has 4 buildings on it and one contains an office space. In all there are 67 units and 30 are ready to rent after cleaning them out, the rest need to have tin built up around the already framed units and we have to put doors on most of those unit.

The owner is very flexible on financing the property. He is willing to let me put down 5K on the property at 5% for however long I want to with a balloon after a year. I will be taking the deal with contingencies to protect me in case the market isn't there that will get me out of the entire deal in worse case scenario I'm out my investment which I'm comfortable with and the owner thanks its a fair deal also. There is a ton of value add to this place and I would be paying only for the value of the land. 

This deal will get me started in the career I want to take (buying real estate of course!) Its a limited risk and a lot of work (that I have lots of time for). I am a college student with classes on Tuesday and Thursday so I can't be at the facility full time and it want really make enough money to pay anyone to help (as is). How does my deal sound to you guys? How can I maximize my revenue with other add-ons (low capital of course)?

Thanks!

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Hey Karsen, sounds like you're working hard on finding a deal. Couple questions.
Have you analyzed the rent currently received on the 30 units?
Are they filled to the point that you can add an additional 30 units and expect to rent them?
Have you figured the cost on adding the additional 30 units?

Couple of ideas on value add:
Uhaul- from what I understand this is a low barrier to entry value add that you skim a profit off the top.
Propane exchange- not sure what's needing on this but just spitballing on this one.
Selling moving supplies- scissors, tape, boxes, blankets and anything else you can add.
Moving services- partner with a local moving services where you send them deals and they give you a commission.

Hopefully this is what you were looking for!

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