Updated over 3 years ago on . Most recent reply
Self Storage Facility #2
Investment Info:
Other buy & hold investment.
Purchase price: $750,000
Cash invested: $63,000
Purchased self storage facility #2. 50/50 ownership with a partner. This is down the street from our first one. 99 units on 6 acres with 50,000 sq ft of outdoor RV, trailer, boat, etc parking. This deal also came with 1 acre next door that has a 6,000 sq ft industrial warehouse on it with a NNN lease in place. Purchase at 90% occupancy. We plan to self manage with our ESS software, organize outdoor parking, and increase rents. Expected value after 1 year is $1,300,000
What made you interested in investing in this type of deal?
Great asset class at a great price. Low overhead and economies of scale.
How did you find this deal and how did you negotiate it?
Cold call - same owner as the first one we bought.
How did you finance this deal?
20% down bank loan. 4.1% fixed for 5 years. 25 year amortization.
How did you add value to the deal?
We will be raising rents, organizing outdoor parking, and self managing to decrease expenses by about $30,000/year.
What was the outcome?
Cash cow.
Lessons learned? Challenges?
Always continuing to learn.
- Steven May