Self storage- Family Re-Union. Deal 14?

[Henry Clark]

Having our first family reunion near Dallas Texas.  My wife wanted to go antiquing so I dropped her in a town. Won’t give the specifics since I might see if my two Texas nieces wanted to do a storage deal here.  Sitting under a Pecan tree. Have a book to read while my wife is making the rounds. But thought I would look at self storage here.  Hard to turn your motor off.

Zoning good

2 acres for sale $300,000

Location.  Couldn’t be better

Texas has one of the highest property taxes. Recommend to do cargo containers

250 x $3,500 set in place $875,000

Grading and roads. $300,000

Electric $20,000

Fence gate- none. Nice location highly visible. Containers will create fence

Security system. $25,000

Website. $3,000

Say $1,600,000 total

99% occupied. 250 x $110= $24,750 x 12= $297,000.

Pro Con:     
A.  Can do year one write-off of everything except land.  Only 80% this year since sun setting.  Shouldn’t have to pay income taxes for 3 years.  Good for cash flow up front.

B.  Since containers are movable and personal property will be harder to finance with a bank.

C.  Risk.  Low since you can add containers as you need them.  Easy to resale.  And the land is still bare and easy to resale
D.  Market and competition. Need further research but looks good.  
E.  Little property taxes since containers aren’t real property.  

F.  Our financial targets are 8 to 12 year payback.  This would be in the 6 to 8 range.  Plus would be in stages since it will take a while to pull 250 together.  
G.  Management would be self service. 
H.  No state income tax.

Cash flow would be about $230,000 per year before management costs.  

Will need to discuss with my two nieces. About 27 and 29. Nurses. See if they want to do. They want to do REI just like everyone hesitant to jump off the cliff.


Start small and Make Your Big Mistakes Early.     

Only in America.  Happy July 4th.