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Updated over 4 years ago, 08/23/2020
Self Storage Deal - Vetting???
I'm vetting a 12 unit storage facility in PA, which has two additional parking spots for rental. Asking price is $329,000. It has a new roof and significantly renovated exterior walls and new garage doors. No security, fence, or cameras. Only electrical is lights above each garage door.
10 units rent for $250 per month on 12 month leases (10x19 ft each), and 2 of the units are doubles (20 x 19 ft each), renting for $500 per month with 12 month leases. Each parking spot goes for $100 per month. No extra land for expansion.
According to the seller, it's about 90% rented, with nearly everyone on 12 month leases. Vast majority of the tenants are building contractors that use the storage for their tools, supplies, etc.
So, how should I vet this? Questions to ask, things to be careful about, etc? Walk me through it. Really appreciate it.
Thanks.