Storage Unit Valuation

[Tyler Hallman]

Hey everyone!

Need some experienced help here... I've found an off-market distressed 88 unit storage facility in a town where every other facility is at max capacity. I'm in talks with the owner and she and her husband are just getting older and don't want to deal with it anymore. There is TONS of room for value add.

Last years NOI was $8360... 60% occupancy, no website, no signage, no advertising. They own it outright and have expressed interest in seller carry.. for how much i'm unsure.

She said she wants $350k for it. If you use cap rate valuation and give it a heafty 10 CAP (lender i spoke with said in this area for storage, a new facility is an 8 cap and this one needs work) 8360/.10 = $83600

My questions are:
1) Am I valuing it correctly? should i be taking into consideration the assessors value of the land and buildings on top of that number or is it just cap rate based for value? I'd like to see how some other people value it.
2) Can i have seller carry 20% down payment and have a bank loan 80%? one bank i've spoke to said they require i put at least 10% of my own money in it and that goes against everything biggerpockets preaches of "opm"
3) For seller carry what are normal terms? (interest rate, months of repayment, etc)
4) Could they seller carry the whole thing with a ballon payment in 4 years? If I did that and refinanced it once updated and filled I should have PLENTY to repay them off. My problem with banks is I am self employed and they don't like to lend money to self employed people.. but once this is filled and worth the money do they even take my self income into consideration?

Thank you!