Considering purchasing a rundown storage unit

[Matt Brown]

I drive by a run down storage unit on my way to work every day. It's very small, and what I can tell it has 10 garage sized units and maybe 15 5x10s. Hard to tell because I can't see all of the small units. It's a single building on 0.31 acres according to the CAD.

It would need a huge renovation. However, I don't K ow where to begin. I'd like to see it and see what the owner would take for it but the CAD lists it belonging to an LLC. No other info on that LLC. It's also listed as C/O one of the largest property management companies in the area.

What are your thoughts? I'm thinking it would be a nice small transition into personal storage which I haven't done before. I'd like to automate everything with it and keep it hands off for the most part.

[Michael Wagner]

Storage is all I do and I agree with much of what was said above.  It is very small with no room to expand so hard to get too excited.  That said, if its on your way to work, you can easily manage it with 1-2 hours of work per week....probably considerably less once stabilized.  And that might be a very good way to get your feet wet in the business.  Bare in mind though that the work involved in buying and optimizing a small facility like this is about the same as if you bought a 20,000 square foot facility.  The larger the property, the greater profit potential without changing the work load dramatically.  have run as much as 80,000 square feet in 2 different states on 5-8 hours of work per week total....NO employees!.  Technology allows for streamlined remote management.  And while class A properties in primary markets might fit the "hotel for your stuff" model, the property you describe can absolutely be run remotely with very little hands on work by you.  You simply set up the right systems.  

I also agree that storage is a business but I disagree that its "not an investment". Personally, I think every investment should be treated as a business....If its not, you can't reasonably expect to extract the greatest possible ROI. Real estate investors who don't treat their operation as a business (even if part time) are engaged in a hobby.

Happy to answer any storage specific questions you have.

Mike