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?

[Henry Clark]

I would take off $390 per month for income tax. 

We use 90% occupancy factor

Thus your 15% leaves 5% for maintenance capex

The building sizes are unusual. What type of structure is this?  How old?
 
Have you audited the contracts?  Are any of them the owners?  Are they at the rates you mention? 

Is their extra land or anything unusual about the property?