Storage Unit Deal Evaluation

[Victor Juarez]

I have been considering purchasing a mini storage unit facility, I have found one that is currently for sale and the owner seems motivated to sell. Please review the numbers and let me know if this deal has potential.

Price- 149k
66 units currently net income $17k per year at 50% occupied, he doesn't do very much advertising and I calculated around $5k in repairs. If I make some modifications to unit sizes (another $8k investment) and offer some climate controlled units and better management I feel that I can increase net income to $30k year at 75% occupancy.

I know the owner is motivated and just wants out, I feel I can get him to accept $120k or less with owner financing. Some areas of concern is that I don't have a great deal of experience with this type of investments (I have flipped and owner financed some single family homes) and i'm concerned with competition (there are about 3 storage units businesses near).
Please give me advise if this is even a good investment in todays environment and what kind of offer would you suggest I make to owner. If some of you have experience with this type of investment I would appreciate any additional items I need to consider.

Thanks,
VicJ