Anyone own storage buildings?

[froghunter]

I need some pros and cons.

Thanks.

[Silent-Type]

I would also like some info on this too!

[froghunter]

Ttt

[CabezaBlanca]

You've never seen one go out of business have you?

[2B4Him]

Join the Texas Self Storage Association. Attend local conferences and state-wide convention and you'll get all the info. you need. The TSSA is the best professional association I've seen.

[Take Dead Aim]

Join the Association and see what you can learn. I am always surprised how many people want to invest in something they have absolutely zero knowledge of. Not saying that this is the case with the original poster just a general statement.

[froghunter]

Sooo I'm guessing that joining the association would be a pro?

[drop dead fred]

Following

[backwoods]

Are you talking about rural boat and RV storage or urban and suburban mini storage?

Like all real estate, it is all about location.
In terms of urban and suburban mini storage we are currently experiencing a storage boom (which is probably why you are asking questions) The storage boom is a delayed response to the great job growth in Texas and in certain regions in the US which fueld single family and multifamily growth. The job growth engine has now ceased with the price of oil and it will take some time to trickle down to storage. I would anticipate market saturation soon. All the major national REITS and local players are already putting units on the market and the average units per location are substantially higher than they have been in the past.
It is a hot urban and suburban market right now, but I would proceed with caution.

If you are talking about rural boat and RV storage, then none of the above applies

[marceco]

There used to be some company that advertised Garagominions or some kind of upscale Garage/Condo type building but I have not seen them lately . I always liked the thought of one of them , especially for those people who have the big RV's and travel a lot .

[froghunter]

Thanks Backwoods. That's what I'm looking for. It's a small town storage unit. 22 bays, 8x10 ish in size. 18 of the 22 are currently rented.

[2B4Him]

Thanks Backwoods. That's what I'm looking for. It's a small town storage unit. 22 bays, 8x10 ish in size. 18 of the 22 are currently rented.

Obviously, lots of folks make money with that size facility, with no on-site management, etc. Ours is 400 units with climate, non-climate, open/covered/enclosed RV, etc.
I can't imagine wanting to mess with the issues of a 'business' with less than 150 or so units. But that is just me.

[froghunter]

Just looking to branch out a little.

[txaggie1]

If you have the ability to invest in one and do not need it's income to survive for a period of time buying a small project away from larger facilities who will squash you it's a good deal for you as a long-term investment/retirement source of extra income.

I appraise commercial real estate for a living so i know them and the business model well. Owning a 20-50 unit project - i'd recommend getting in and trying very hard over the next 5-10 years to pay your note down as much as possible. There's not enough "income" on a small project to have a debt coverage ratio of 70-80 percent. Put money down, use the income to pay it down or off asap and now you have a retirement income source. Your still only going to net 75-80 percent of the monthly income after you factor in taxes, insurance and some maintenance. But having another 1500 - 3500 (depending on size of the project) in additional monthly income is now worth your time.

It's like any other small real estate investment - if you buy right the deal will be better. Most markets are at an all time high, save your money and buy when the market goes down and you will get more bang for your buck!

Best of luck - my plan is to own a boat/rv storage facility myself but i'm building it from the ground up as i acquired some land to do this last year.

Conn's - small investors often make the mistake of assuming tenants are forever. If you have to rely on the income of the property to support the debt even for 3-6 months, your investment will fail. If you have some liquidity and can hold your investment through rough times - your going to do just fine.

[drop dead fred]

I'm looking into boat rv storage my area is saturated with enclosed units but much fewer open/covered storage. I also like the idea of low over head and flexibility with the land later down the road without permanent structures. Being 5 mins from lake and across from one of the biggest high end communities being started in the next 6 months I feel good about it