Updated almost 4 years ago on . Most recent reply
rookie, deal evaluation
So wondering if I could get some advice. An interesting deal came up for a storage unit complex that I'm trying to educate on how to evaluate.
Asking Price $255k
Rental Income from storage, 21units: $2233/mo
Rental Income from Cell Phone tower, 20yr lease: $8100/yr (need to find out how long is left)
Taxes: -$145/mo
Insurance: -$120/mo
Utilities: $80/mo
Potential NOI: $30,399/yr --> 11.9%CapRate.
This is assuming full capacity and no management costs.
The property will definitely need some TLC and a facelift, as well as paying a management Co (I'm out of state).
The lot size is big enough to expand and construct more units.
It's near a lake and could be marketed as RV/boat storage. More established rentals in the area have an 8mo waitlist.
Any advice?