Storage Unit Question
I'm invested currently in residential real estate, 3 homes. Looking at making the cross over to self storage. Was wondering if someone experienced could take a look at a potential deal and see if I'm missing anything.
it's a 27 unit facility, here's the financials.
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27 units total
All are rented except owners unit.
3 - 12x30 units
12 - 10x30 units
12 - 10x20 units
Current rent roll.
3 at $115
9 at $105
2 at $90
2 at $80
10 at $75
One unit is the owners unit
Taxes $4400
Special balance of 26k
Insurance $200/month includes liability insurance.
Electrical $66/month
My wife and I do the property management ourselves. Snow removal and mowing. Renting/showing units.
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Now where I'm struggling with this, is I'm showing a yearly income of 28560 if maintaining 100%, which I know isn't feasible. I'm showing yearly expenses at around 26400.
so am I looking at this wrong in that the units are barely making the payment now and the cap % is awful? Or am I missing the bigger picture in that I'm also getting an acre of commercial land and the room to build an additional 27 units. I'm just used to residential real estate where I can cash flow 2500 a month, not 200