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Updated over 8 years ago,
Please Help analyze this possible storage unit purchase
I am looking at a storage complex. Can you help me analyze. I am still trying to gather some figures on how many units (I believe 60), vacancy rates, and an average price per sq. ft. for rentals. Should have some of those tomorrow. I do believe there may be another complex close by causing competition but I will check into it. Agent said there may be a 65% occupancy, but she did say
ex-employee was pocketing money. Not sure how to verify any of that. Here are the numbers I do have per a 2015 P&L (Rounded up) There is also a 1064 sq ft office included. They are asking 299,900 Land locked, no room for expansion.
Total Income 22,187
Insurance 189
Liability Ins. 767
Interest Expense 174
Loan Interest 10534
Labor 6400
Repairs 646
Supplies 90
Taxes 2532 (Not sure what value amount this is on)
Telephone 841
Utilities (G & E) 802
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I talked to commercial lender today and he said they require 30% down, financed commercially at possible 5.3 to 5.6% + for 15 or 20 years. By doing loan commercially, I qualify this way for this particular loan. How does this deal look and if it looked good, what would be a good first offer and final offer?