Is this storage unit facility priced accurately??

[Joe Partington]

Hello BP community,

Need a little help on analyzing this potential purchase.  A little background info on me.  I am a construction business owner (contractor) and I own 5 duplexes in which one of them I house hack. I recently reached out to a brand new storage facility owner (The facility is a little more than a year old.)  Its located in central Nebraska  (a town of about 40,000 residents).  The facility has 5 buildings, 51,330 rentable sq ft. 215 total units (none climate controlled) The property has an automated entry gate as well as a security fence surrounding the entire facility with security cameras located throughout.  The current owner has been self managing and has no help.  The price he said he would sell It for is 2million.  Right now it's at a little over 90% occupancy. (Seems pretty impressive given he's only been open 1 year and he's managing it all by himself while running a separate business. Owner is confident by the end of the year it will be at 100% occupancy.  He has given me all his info., P & L's, rent roll, etc.

Upon acquiring these self storage units I would look to use a software management company to help manage. Here are the numbers (keep in mind the rents are at least $5 per unit low as to area comps and would be raised):

$2,000M Purchase Price
$1,900M @ 3.625% for 25-years
	10X10	10X20	10X30	Total
Total Units	22	88	105	215
Monthly Rent	$ 50	$ 70	$ 105
Monthly Revenue	$ 1,100	$ 6,160	$ 11,025	$ 18,285
Annual Revenue	$ 13,200	$ 73,920	$ 132,300	$ 219,420
Vacancy (10%)				$ (21,942)
Insurance				$ (4,500)
Taxes		2020 Assesors		$ (30,242)
Other (5%)				$ (10,971)
Net Income				$ 151,765
Monthly Payments (P&I)				$ 9,640
Annual Payments				$ 115,680
Annual Margin				$ 36,085
DSC				1.31

  Thank you, any feedback is much appreciated.