storage unit opportunity

[David Bates]

i'm interested in a storage unit warehouse in east tn. that currently has 35 units and the ability to add 30 to 35 more all in a 10400 sq ft warehouse under 1 roof. the property has space for boat and equipment storage outside. there is a small college just a couple of blocks away. but the building isn't on a main road.It will also need added security and fence upgrades.Its listed for 154,000.

A little about me: just purchased my first investment property in Tellico plains Tn in feb. this year.for 204,000. A cabin called The eagles nest. i have it listed on airbnb. I have a local guy there managing it(superhost). He took it from 7 bookings a month to completely booking it out the last 2 months and is listed as one the best in the area on airbnb.

My question is: I'm not sure if this a good investment and really how run the numbers. Also, i would need an investor to help me with this property and remodel -something that i have never used before and scares me some- I'm just now starting to make a profit on my cabin and have ways to go before breaking even on my cash investment. I'm 54 and my goals are to have 5 or more income producing properties in the next 6 years that will supplement me in retirement in the next 8 to 10 years. I'm looking for investments that are going to grow but they just need to pay for themselves and recover my cash investment in the next couple of years. Of course if it all grows quicker all the better. I also work about 70 hours a week.

Thanks for any input and advice.

David Bates Castalian Springs Tn

[Henry Clark]

Market evaluation:

Type in "Self Storage Gallatin, TN" next to you.  Switch to the Map version.  This is the largest town next to you.  Already a lot of competition.

Castillian Springs itself doesn't have the market for 60 units.  

If your still interested;  ADJUST the numbers based on your info.

Additional Costs:  Rough.

$20,000   Fence for two acres

$25,000   Automated gate

$12,000    Security system and camera, both inside and out

$105,000   35 extra units.  This is middle of the road between you stick frame or get commercial indoor units.

$15,000    Electric work

$??,????     Security door access system.  I personally wouldn't do an indoor storage facility for this small and off the road.  A lot of damage can get done inside.  You have to have a either an automated security gate with internet communication to you and lock down and open up.  Also motion sensors inside the unit tied to the camera units, with notification to your phone.  Not enough units or income to offset the security setup.  If outdoor access storage, then no security or fence is normal away from large metro areas.

Revenue:  Again adjust to your local.

$32,000  60 units at $50 at 90% occupancy

$5,000   Outside storage  15 slots at $30 at 90% occupancy

Expenses:

????????Property tax

???????Insurance

???????Internet/Electric

Will leave the financial analysis to you.  Adjust above figures as needed.