Well, all of them… in other words in order to make an accurate analysis all the factors must be considered. Some of it is even beyond numbers for this specific property, such as demographics of the surrounding area, population by income, the number of rental units within a 5 miles radius, and what % that represents of the overall population, etc, etc. (in other words, who is your customer base). If not all of that info is available then you could either obtain it, or we could make assumptions as to the data… which usually relates to the wrong answer, but in the process you could learn how to evaluate such a property and what to consider.
Another possibility would be to scan and email all the info that you have to the email address above and then I can attempt to pull out the pertinent data and formulate a response here so that others could benefit from the info. Of course I wouldn’t post any specifics about the location or parties involved, or you may even wish to redact that info before scanning and emailing, if you choose to do so.
If I were to look at the data that you have I would likely formulate a number of questions first, then with that additional info I would render an opinion…
Analyzing a SR business - want to help? - Posted by Tx Investor
Posted by Tx Investor on October 19, 2010 at 22:45:37:
Looking into buying a storage rental business and would like to see if anyone would like to help analyze the numbers. I have tons of info but not sure where to start. This would be my 1st commercial property purchase.
Although I developed and built mine from vacant ground, and didn’t buy an existing and operating site. I did however sell the business several years later so I should be able to help with some analysis.
Shoot the numbers and info to the email listed above or post them here online for all to follow the analysis; either way.
Self Storage is much more of a business play than a real estate play. Considerable differences between the two, or I should say many more considerations the cover with SS than your typical rental property. Things that matter with self storage are the type and demographics of the local community, (best if located near considerable amount of rental props), how much and type of competition nearby, will there be an eventual higher and better use of this parcel of property… aka land banking… meaning the storage biz makes cash flow and profits during the 20 yrs that it takes for other comm’l development to reach the storage site and eventually you sell to a higher and greater use and for a large profit… And the list of things to evaluate goes on.