RV & Boat Storage Facility Purchase
Investment Info:
Other buy & hold investment.
Purchase price: $350,000
Cash invested: $74,000
Purchased this 28 unit RV & Boat Storage facility in Missouri. 2023 construction - 100% occupancy at purchase. There is a billboard on site with lease in place. 2.5 acres total with outdoor parking and room for expansion. Purchased this one by myself - 80% LTV. Appraisal came in 115k higher than purchase price. Storage facility #6 added to the portfolio.
What made you interested in investing in this type of deal?
This is the 7th storage facility I have purchased - new construction at a 9 cap purchase.
How did you find this deal and how did you negotiate it?
Direct to seller - cold call.
How did you finance this deal?
80% LTV commercial loan - 25 year AM with a floating rate of wall street prime.
How did you add value to the deal?
It appraised for 115k more than I bought it for so already have six figures in equity - will increase outdoor parking and raise rents over time.
What was the outcome?
More cash flow and equity to the personal financial statement.
Lessons learned? Challenges?
Always double check prepaid rents that get transferred at closing.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
N/A
- Steven May