New to Self Storage....analysis help

[Lane Dohl]

This is a completely new category for us and not quite sure how to interpret...  my brother/partner is a real estate broker in a small market where he can rarely find an open self-storage unit for customers that are moving to the area.

Here are the numbers:

Seller proposed sale price of $225,000.00 ...almost new building.

20 - 10x20' units with average $75/mo.

4 - 15x40' units at $250/mo.

Gross Rental Income of $2,500/mo.....$30k/year

Property taxes ~ $3,000/year

Insurance ~ $1500/year

2% for maintenance?

5% for management (even though we'll self manage to start)

20% down payment....$45,000.00 plus ~$3,000 closing costs. 20 year amortization at 5% interest....~$1,200/mo P&I.

Am I missing anything?  Should I be looking at a "per unit" cost?....square foot cost?  

Is this a good deal, a so so deal, or no deal?

Any input is greatly appreciated!

[Alex Forest]

I dont know much about self storage so probably shouldn't be commenting at all... but, even though its 'self' storage, isn't there a level of management that can take time...with a number of units, inevitably dealing with people to check it out, sign contract, move out, deal with locked out with no keys, etc etc. The time factor is what I would wonder about. That being said, yeah is there extra land to expand?  Sounds like high demand and could have promise.