Can you BRRRR a Self Storage Facility?

[Nicholas Lohr]

Can you BRRRR a Self Storage Facility?

Are there any big similarities or differences compared residential BRRRRing? 

Has anybody used this BRRRR cash out strategy to buy more self storage properties as it can be done with residential?

I know the rehab "R" would be more like getting more storage units rented or increasing the rents rather then fixing up the property, even though you could do that too.  

Specifically hows the financing, how do they appraise after the '"rehab," and do banks lend about 70% of the ARV as they do on residential properties?

[Milton Rivera]

@Nicholas Lohr

I highly recommend you listen to BP Podcast episode 286 from a couple of weeks ago. 

The bottom line, storage facilities are valued like commercial properties and not single family residences.  If you improve the property, say you go from a regular property to a temperature control unit, this will allow you to increase the monthly rents and hence drive up your revenue.