Storage Facility Deal Analysis N00b Help!

[Scott Johnson]

Hey, BP!

Is there anyone here that is actively investing in Storage Facilities? I’m analyzing a smaller, 13 unit building and wanted someone with more experience to review my numbers and see if I’m on the right track:

Income

• 7 Storage Unit (8' x 7' x 31'): $895/m
• 6 Storage Units (9' x 9' x '31'): $1,800/m
• Total: $2,695

Expense

• Maint/CapEx/Vac (15%): $404/m
• Utilities: $143/m
• Insurance: $133/m
• Taxes $291/m

Debt Service

• $163,363 | 5.5% | 20 Years | $1,124/m

Cash Flow

• $600/m

Purchase Price

• $204,203

The “Improvement Tax Value/Total Tax Value” percentage is weak so the depreciation is lacking, making cash flow the preferred strategy.

My main questions are:

• Am I analyzing this effectively?
• Is 15% an appropriate Maint/CapEx/Vac?
• Is there something else I need to include?