Seeking advice on my first self storage property...

[Mark Roberts]

I've been kicking around the idea of investing in self storage for a while now and want to pull the trigger on getting my first property.  Over the weekend I sent an offer over for a property that I feel has potential and I'm expecting to get a counter offer tomorrow.  I wanted to put it out to see what kind of insight some of you all might have on the deal.  

1. 36 unit facility (35 are 10x20 and 1-9x6). Current rent appear to be a promotional price of $99 / month / unit with past rents of $130.  Looking on SpareFoot it seems $130 is about market price for a 10x20. 

2. Monthly rental income reports form the seller dated 3/15-2/16.  Show on average 13 units rented for rental income of around $1800 / month.  There did appear to be a steady decline in the rental income over the 1 year period.     

3.  For my analysis I've used the below estimated cost for expenses.

Property Management Fees	250.00
Repairs and Maintenance	25.00
Real Estate Taxes	273.33
Rental Property Insurance	150.00
Homeowners/Property Association Fees
Replacement Reserve	50.00
Utilities	-
- Water and Sewer	-
- Gas and Electricity	100.00
- Garbage	100.00
- Cable, Phone, Internet	73.00
Pest Control	-
Accounting and Legal

4.  Loan - I'm working with some local lenders to see what options I have as far as rates & terms since I have no commercial experience.  In my spreadsheet I used 20% down, 5% interest, 25 years.

5. Original offer was $140K and per the seller's agent they plan to counter at $160K.  

6. Other factors that might change the deal...

- The property is a 5 hour drive from me.  There is no leasing office on site.  Currently they facility has internet access with a sitelink computer system and a digigate access control.  Hope is I can field the day to day phone calls and hire someone local to tend to the property as needed to add/remove locks, sweep units, etc.  Local mgmt has been estimated in the property management line item above.  (I have no personal experience with Sitelink or Digigate... Possible?  or Crazy?)

- I don't know how to get statistics on the market being saturated or underserved by storage facilities (probably my biggest concern).  Any direction / input on this would be greatly appreciated!

- Marketing - I've not budgeted for marketing and have no experience marketing a storage facility.  Currently occupancy is low but hopes to turn that around make the deal sweet in my opinion. 

Thanks in advance for any input!