Found a small self storage facility, 38 units. They have no utilities whatsoever. Is this common? Is it a bad thing? No utilities means my only costs are taxes and insurance along with some maintenance (landscaping and such) The woman that owns it now is only renting out about 16 of the units and she has her stuff in the other 22 units. (She’s a builder) She never advertises, has a small sign that has the number for her office on it. She wants around 200 K for it. I ran some numbers and with 20% down, our debt service should be somewhere in the neighborhood of what the place is making now with 22 units empty. (she would move her stuff out) I’m thinking this might be a nice little investment. I don’t believe it will make or break me, but I think I could fill it pretty quickly and throw it back up for sale. Let me know what you think. As always, I appreciate anything you got for me…
I would not worry so much about the lack of Utilities as I would the security factor.
If the units dont have lights and its in a rural setting with no trustworty mananger living near it that is a recipe for trouble.
People try to break into self storage units. It happens.
200k seems like alot for one 38 unit setup. How much does she have the units rented for and how big are they? Is there much extra land included?
Then you need to review what kind of condition the units are in. What material was it made from. Is it Trachte built? How old is it? If she is using 22 units for move construction equipment in and out, then how many dents are in the building? Each unit needs to be inpected.
Personally I would take the 200k and find a MHP, they are so much easier on the income per customer/turnover factor. Some people around here like storage as an investment. After 4 years of managing units I would only do more with one of two requirements.
I lived by them. (along with my shotgun)
I bought a LARGE setup with fences, mananger and the whole nine yards.