Updated over 12 years ago on . Most recent reply
Storage Units
How good are storage units? Are they a good investment? Does anyone have any storage units? How many units do you have? What do you get for each unit per day? Any thoughts?
Brian
Most Popular Reply
I am an owner of two storage properties in California. As with most any other real estate venture, location is key. Based on general surveys, roughly 1/3 of your tenants come in from drive-by visibility, another 1/3 come from advertising (YP and Internet), and the last 1/3 come in from referrals from existing clients and nearby competitors which are full.
Debt is readily available for these assets, and SBA financing is also available (as of 10/2010). They tend to perform best in solid B markets. Retail-type locations are best as they are typically highly visible. Converted warehouse buildings can also do quite well if located in densely populated areas. Cash on cash returns are generally in the 10-12% range.