self storage advice

[Patrick H.]

Hello,  looking for advice on this deal.

 I'm under contract on a 250 unit self storage business that is 60% occupied.   Its in great shape, with all concrete drives in a non drive by location but with a in city limits location.   The town is over built on storage units.  I've found a second self storage business that isn't listed but for sale that is 15 older units in a great location with good drive by visibility.   Its 100% occupied and slightly under market on rents.   It should sell for around 60 to 70k. Asking price is 95k.   if I buy it  I'd like to think I could put up a sign and name it the same as the larger facilty and draw business to fill the vacant units.   It cash flows barely at 95k but it is older with gravel and would need new doors at some point.

What should I give for the second location of 15 units?

[Patrick H.]

Well its been 5 months owning the Storage facility figured id chime in with a update.

Occupancy was 61% at closing now its at 75%

Property came with a foundation for a 3600sq ft building that never got built. We are getting ready to build it due to the fact that we are filled up 100% on 2 mid size units.

It has been a dream come true!

I haven't bought the other property  that I wanted for the advertising yet still working on it.  So far I haven't needed it.

I went to the ISS expo in Vegas.  It got the creative juices flowing and learned alot.  I'm really starting to like this business a lot!

Thanks for all the advice!