Question About Self Storage | Need Some Advice
I am looking at a self-storage unit and wanted to provide some of the details I received below in hopes of getting some feedback:
One of the value adds they say is there is room to build more on the land. I dont know how much it would cost to build a 50 unit addition.
Is the sale price good for the gross rents? I am trying to not look at is as a single family home. Thanks
Price 320,000
Size breakdown:Small (5x10): 16 doors - $45 per monthMid-Size (10x10): 30 doors - $60 per monthLarge (20x10) : 2 doors - $85 per month
Full capacity income per month: $2,690
Enough space to build at least 48-72 more units. In place is an established website that handles most of the reservations.
Customers sign up online, a gate code is auto-generated and client can use it immediately. No on-site staff, as it’s a pretty low-involvement,
turnkey setup.
Value add:Quick: Convert two Large into four Mid-Size which increases monthly income by $70.
Future: Add 48-72 more units.After addition of 72 units, monthly income is approximately $6,725 without any rate adjustments.
Expenses:Monthly: JEA (Electric) $112SEO (Not necessary anymore now that it is rented up, we would cancel) $125Website $50Insurance $20 (We pay quarterly but it averages out to $20 per month) Mowing: $40 - $80
Annual: City Property Tax: $1033County Property Tax: $1233
One of the value adds they say is there is room to build more on the land. I dont know how much it would cost to build a 50 unit addition.
Is the sale price good for the gross rents? I am trying to not look at is as a single family home. Thanks
Price 320,000
Size breakdown:Small (5x10): 16 doors - $45 per monthMid-Size (10x10): 30 doors - $60 per monthLarge (20x10) : 2 doors - $85 per month
Full capacity income per month: $2,690
Enough space to build at least 48-72 more units. In place is an established website that handles most of the reservations.
Customers sign up online, a gate code is auto-generated and client can use it immediately. No on-site staff, as it’s a pretty low-involvement,
turnkey setup.
Value add:Quick: Convert two Large into four Mid-Size which increases monthly income by $70.
Future: Add 48-72 more units.After addition of 72 units, monthly income is approximately $6,725 without any rate adjustments.
Expenses:Monthly: JEA (Electric) $112SEO (Not necessary anymore now that it is rented up, we would cancel) $125Website $50Insurance $20 (We pay quarterly but it averages out to $20 per month) Mowing: $40 - $80
Annual: City Property Tax: $1033County Property Tax: $1233
