All Forum Posts by: Curt Davis

As a dual agent/transactional broker they will have to act very vaguely.  The idea that going with the listing agent will somehow give you an advantage is not always the case.

Daniel, so what your saying is at $320k purchase price, thst is good for this deal? Also, the space to build additional units is already factored into the initial purchase. 

I am looking at a self-storage unit and wanted to provide some of the details I received below in hopes of getting some feedback:

One of the value adds they say is there is room to build more on the land. I dont know how much it would cost to build a 50 unit addition.

Is the sale price good for the gross rents? I am trying to not look at is as a single family home. Thanks


Price 320,000
Size breakdown:Small (5x10): 16 doors - $45 per monthMid-Size (10x10): 30 doors - $60 per monthLarge (20x10) : 2 doors - $85 per month
Full capacity income per month: $2,690
Enough space to build at least 48-72 more units. In place is an established website that handles most of the reservations.
Customers sign up online, a gate code is auto-generated and client can use it immediately. No on-site staff, as it’s a pretty low-involvement,
turnkey setup.

Value add:Quick: Convert two Large into four Mid-Size which increases monthly income by $70.
Future: Add 48-72 more units.After addition of 72 units, monthly income is approximately $6,725 without any rate adjustments.
Expenses:Monthly: JEA (Electric) $112SEO (Not necessary anymore now that it is rented up, we would cancel) $125Website $50Insurance $20 (We pay quarterly but it averages out to $20 per month) Mowing: $40 - $80
Annual: City Property Tax: $1033County Property Tax: $1233

You always need to disclose that you are a licensed agent.  You personally are still a Realtor so regardless of what entity it is, as long as you personally are involved, disclosure is always the best policy. Besides, should not make a difference in telling them that you are one. 

Sometimes the key to saving on rent-ready costs is to renovate the home on the front end so that these costs are minimized when it's time for rent-ready. A lot of PM companies when they do their walk-thru will point out every issue bc they want the home to be as attractive and in good condition.  Your last question, I don't think there is a simple answer for that one.  The reality is that on most turnover costs, especially if the tenant has lived there for 4+yrs, you will have things that will need to be addressed just to paint and clean the place up and hopefully that is all that is needed.

I guess it depends on how much in available funds you will have. BRRRR is one possibility. You could also lend it out as a hard money lender would.

Memphis probably has more turnkey companies here than any other market so you have your hands full in choosing one to go with. Start making a list of the ones you find and start checking them out. Though in theory, they are all the same, they all have slight differences that separate them from each other.

Good luck! 

I think it is going to be very difficult for you to get a true BRRRR deal being that you are out of town. Someone like Dean might be able to assist you with an off-market deal but that will be about your only option as anything remotely close to this that gets listed on the MLS will be overrun with offers.

Good luck!

I dont know Florida RE law but I would assume you wont have to pay any fees to your Broker. 

You can always ask your broker and they will tell you.

Good luck 

I will be attending BPCON2021 this year. I will be staying on-site. I was also at the 2019 event. I am located in the Memphis market.  I have been a part of BP since 2008 so I think that officially makes me a senior citizen here !!!  Looking forward to networking as well as being actually excited for several of the break-out events!!  See you there!!!