All Forum Posts by: Matt Wignall

Hello Bigger Pockets community,

I am currently analyzing a prospective acquisition of a 28-unit self-storage facility situated on 3.1 acres. The asking price is $295,000, which is above a recent appraisal(previous buyer could not obtain Financing) of $270,000.

The property exhibits strong operational fundamentals:

• Current Occupancy Rate: 100%
• Gross Monthly Income: $2,720
• Construction Year: 2023

The facility is located in a rural area, approximately 10 minutes from the nearest town. It features a gravel lot and currently lacks perimeter fencing or security cameras. Despite these aspects, it has consistently maintained full occupancy since its construction.

My primary lender is quoting a required down payment of $75,000-$85,000 for a 25-year amortization. The projected cash flow, given the minimal operating expenses, appears favorable. My objective is to explore alternative financing structures that would minimize the initial capital outlay.

I have already determined that seller financing is not an option for this transaction. While I have the liquidity to make an all-cash purchase via a Home Equity Line of Credit (HELOC), I would prefer not to fully leverage that resource. I am considering utilizing a HELOC for the down payment, which would also enable me to implement immediate rent increases to bring rates in line with market values. Current analysis suggests a potential monthly income increase to $3,120 if rents are adjusted to market rates.

I welcome any creative financing suggestions or strategic recommendations from those with experience in self-storage acquisitions or alternative investment structures. Your expertise is greatly appreciated.

Thank you, what are people supposed to do? There are so many homes that have been built over 40 years ago.

Anyone having issues with their insurance company not wanting to insure properties over a certain age? I have American Family. Have 4 SHF, 2 Boats, Several cars and an Umbrella and they cancelled one of my properties due to age. Thoughts?

Where did the Airbnb estimator go? Am I missing something? I found a calculator but it won't work on my iphone.

Going to show a guy right now, in town on a contract for 3 mo.  Says his company is going to rent the home.  Has anyone rented to a company?  Says him and two others will be staying.

Thank you!  

I have a fully furnished home in Superior, WI.  4bd/2ba 2200 sq ft

Should I include…..

Utilities?  All of them/Some of them

Bedding?  Do I need to supply sheets, Blankets and Pillows?

How do I structure the utilities in the lease?  Do I pay up to a certain amount?  Heat/electric avg is $150-200/ mo.   internet is $70, TV is $150(dish).

I’m planning on using a PM Company.  they do not typically do furnished rentals.

Was thinking of renting $1800-$2000 12 mo. Lease, unfinished and $2200-$2400 3 mo lease furnished.

Anyone have any insight or suggestions I’d really appreciate it!  I currently have 3 LTR unfinished, this would be my first Short/Mid Term rental.

Thank you!

@Bryon Andrews - Thanks again for the input!  I recently came across an off-market 12-unit opportunity that I called on and the owner is looking to get out.  I am going to be meeting him on Sunday and getting a tour of the property and units.  I am very interested in coming up with a creative way to get this done.  I have done some preliminary numbers and the rents are currently below market and have had long-term tenants.  The building is in good shape and I have developed a great rapport with the owner.  He even told me on the phone that he had been kicking around the idea of contract for the deed but I am not interested in that, but I may be interested in him holding a little bit.  I just do not know how this works or how to even start to structure a deal like this.  I'd be interested in how you pitch something like this or maybe a few ideas to consider!

Thanks!

Thanks Bryon!  I am currently looking at a mixed property of 6 apartments and 2 commercial units in a seasonal tourist area.  Looks like the seller is pretty motivated and willing to do something creative even a contract for deed.  I am working on finding out all of the particulars but I have never structured a deal with creative financing.  I'd rather use OPM if I could.  I'd really like to hear some ideas on what you thought I may do!  For Example, like you did but any other ideas?!

$575,000 Selling Price

Thank you so much for the nice reply Elizabeth!  Very nice of you to give such great advice and to take the time to share with me your successes!  I have a realtor here currently and she is super nice but I think that she does not have the knowledge that you are referring to.  I am very new to the area but plan on being here for a long time.  I am looking to make connections up here and even maybe some potential partnerships!  Sounds like you and your team are doing really well here!  My fiance and I would love the opportunity to connect with you if you and your team are willing.  I completely understand if not but just throwing that out there!  I am willing to put in the work, but making some connections in the area is always great!  Thank you again, Elizabeth!  :)