Self-Storage Analysis (1st time looking at self-storage)

[Grant Grabinoski]

Hello All,

I'm analyzing my first self storage unit deal and wanted to present what I have currently come up with. Any feedback on what I can analyze further would be great! Here is the breakdown: 

75 Units non-climate controlled currently running at 76% occupied. Asking $325k. Historically at 85-90%. The perimeter is secured by high-quality fencing and an electronic access gate. 

Total population 1 Mile: 10,871 / 3 Mile: 82,115 / 5 Mile: 292,589

6 Competitors within 1-3 Mile Radius

Gross Income at current 76% Occupancy $3,818.24 

Gross Income at standard 85% Occupancy $4,270.40

35% Standard Expense $1,758.40

PI Loan @ 8.25% 1,899.75 (20% down on 325K)

Easy Storage Solutions Call Center $195

Easy Storage Solutions Website $49

Total Expenses: $3902.15 

My NOI / Mo with the current rate and asking price would be -$83.91. It seems like for this to work I need to find a way to increase current rates to close to 85% occupied and offer around $250k ($1,592 PI Loan). Doing this should provide a NOI / Mo of $675.99.

What else should I be looking at for this deal??? And any further recommendations???

Thank you!

[Michael Wagner]

ESS call center and management software should be rolled into the 35% operating expenses. Also a small property like this will probably run close to 30% which will help your numbers some. May be so e hidden potential if current rates are considerably below what other comparable properties are charging...?

The 8% seems high...should be able to secure in the 6% range on a property that is relatively stable.

I echo the question about how many square feet this property is.