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Updated 8 months ago on . Most recent reply

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Robert Tinker
  • Rental Property Investor
  • Round Rock, TX
159
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246
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RV and boat storage

Robert Tinker
  • Rental Property Investor
  • Round Rock, TX
Posted

Thinking into the future. Curious about RV and boat storage as an investment strategy. Anybody doing this? Pros vs Cons. Can you purchase one with an SBA loan? Thanks in advance!

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Henry Clark
#1 Commercial Real Estate Investing Contributor
  • Developer
3,772
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3,787
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Henry Clark
#1 Commercial Real Estate Investing Contributor
  • Developer
Replied

@Robert Tinker

Here are some exercises to help you find a location to check out.

Get on Sparefoot or Google.  Prefer Sparefoot since they show you the price.

Type in Round Rock/Austin/Temple/Waco/Killeen or just type in one of them.  Then in the upper left of Sparefoot you will see a drop down with vehicles, RV or boats, doesn't really matter, pick one.   On the map you can scroll between the towns.  As you get over them, there locations will show up on the map.

Round Rock/Austin are the same market.  Normally in Selfstorage you hear about your 1 to 3 mile market.  RV/Boat storage market range is even further, up to 20 miles.  Because there isn't as much competition.  Vehicle storage can't compete profitably when compared to Self Storage, "generally" speaking.

On the sparefoot page on the left side you can select covered, open, enclosed, etc.  I would pick uncovered and outdoor covered (canopy).  The cost of enclosed is huge and more risky.  Being in Texas with a lot of drill rod, if you have a welding friend with a high lift, I would look to do Canopy parking.  Need some shade down there.  

Back to looking at Google maps, what I am about to say isn't very scientific. You could go around and count, then compare to population.  But lets do this quick.  

Round Rock/Austin- lot of competition, plus your land is going to be higher.

Temple/Waco/Killeen- less competition.

Next look at the map and the competition closer.  You want to "out position" them.  Keep in mind most of them were built as "Self Storage" locations and not as RV/Boat locations.  They will want to be closer to the population and their land will be more expensive and harder to find a zoned location.  If they are doing vehicle storage it is more of Name calling.  Example: A 10 x 20 can be both self storage and Vehicle storage.  Beyond that, most self storage only being 8 1/2 foot tall or so wide, a 10 x 30 or 10 x 40 storage unit can't handle RV's and boats.

Recreation areas/cheaper land:  The way you beat your competition is to build closer to the Recreation areas or on routes to them, from the populations. Most people would prefer to not have to drag their RV or Boat back "into" town, especially if it is on the way to their primary rec area.  Also the land and rent will be cheaper out there.  "Out position".

Your Market:   Boats and RV's are the same thing.  Don't get into Enclosed right off the bat.  A lot of money and risk.  Your in the 30 to 40 foot range.  With some 20's.  Don't do the 50's.  This is for "A" class motor homes, which there are not a lot of.  Also if I buy a $250,000 to $1mm "A" class home, I want enclosed.

Don't look at the 20 foot vehicle storage, that won't be your decisive market.  

Mix:  equal parking 20/30/40 foot spaces.  

Zoning:

Read my Zoning I3? post.

Setup:

Read my Parking post.

Security:

Read my Security post.

 Financing:

Read my post on "Broad discussion on Financing".  Covers SBA.

Subject to in depth research, I like Belton, 317/36 intersection, 340/84, small towns/intersections between populations and recreation area.

Another business opportunity.  Your near Ft Hood, in Killeen.  I would look at RV/pontoon boat rentals near the lakes.  Especially if you can buy some land close by to stage/store them.  Require them to take out insurance.  

Good luck.  I'll attach some more info in a minute.

  • Henry Clark
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