New to Self Storage....analysis help
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!