Mixed use, self storage calculation information requested

[Maryanne Cameron]

My background up to this point is in short term vacation rentals and now small multifamily buy and holds. I'm looking at broadening my portfolio to include self-storage but am in the information-gathering phase. I've received the financials on a local property which is mixed use. The property includes 22 storage units, five tiny houses and 10 RV lots on a local waterway. I'm well versed in the local vacation rental market but would like to connect with a fellow BP'er to discuss the SS valuation. There appears to be some opportunity for improvement on the SS side, it's 50% vacant. I'd like to put together a solid offer and just want to run information by someone that has experience in SS. Thank you in advance. 

[Michael Wagner]

Storage valuation is based on income. To get a ballpark stabilized value, simply take income minus expenses (typically 33%) and then multiply. For traditional facilities of 15k square feet or more, we would multiply the NOI by 10-12.5 to get a value. The property you have is unique and may not fit that model exactly but this should give you a place to start from.