Small Self Storage Analysis

[Adam Feick]

I am looking at a small self storage facility.  Here is the information I know.

2 buildings, 46 units total.  Fenced in with automatic gate.  Space for another building (about 24 units) and RV/boat storage 10~15 spaces.  

Asking price $185,000

Current potential gross rent $1,930 (mo), actual gross rent $1,320 (mo).  Just recently have occupancy at 80%, but it is not reflected in their income yet.  The current rental rates are near market rent little upside.  

Expenses:  Taxes $100/mo, Electric $60/mo.

The current owner self manages and has it mixed in with other investment properties.  Their records are terrible and they can't tell me how much in maintenance, insurance, lawn care, etc. that they have.  Only taxes and electric.  

My assumed monthly expenses at the sellers price:

Taxes $170, Insurance $70, maintenance $70, management/software $110, lawncare $75, misc $50.  

This puts the Cap-rate sub 5%.  For the area cap rates are selling around a 7%.  

Can anyone tell me are my assumed expenses out of line?  

What other expenses should I be thinking about?

Thanks in advance!