I have own a self storage business for a number of years. Has been very good. Some of the things to consider are: Check on your taxes, insurance, and any other monthly expenses such as utilities and phone bill as well as monthly advertising. You will not always stay 100% full, run your monthly expenses and come up with a % to break even and go from there.
Based on the average price per unit I’m assuming this building is around 3200 sf.
Posted by Richard on December 27, 2006 at 09:46:12:
I posted this on the other page and then realized there was a page for commercial real estate questions.
I was contacted by the owner of a storage unit that I rent 2 units from, telling me that he was planning on selling his storage business. He’s in his late 60’s and ready to retire. There are 32 storage units (various sizes), that rent for $2080 per month. Average price per unit is $65, which I think could be raised somewhat. It is fully rented at this time. There is also a 2 bedroom apartment located on the property that rents for $450 per month. It sits on 1 acre and has room for an additional 10 - 15 units to be built on the property.
The asking price is $175k. Does this sound like a good deal? TIA. - Richard