Hi Saul, it depends on what you're looking for - cash flow or appreciation?

@Luke Spencer I am not on the management side but I can tell you it took 2+ years to fill 300 units at one of our facilities and the other just hit 300 units in 12/13 months so it really depends on the demographics, and local housing market trend, the more people moving in and out the higher the demand for storage.I think if you're looking at a saturated market then the upfront cash to turn the warehouse into self storage is not a good idea but then again, maybe those operators are on back roads ( low visibility ) and don't push google ads well.

If you choose to go with this strategy you could complete your exchange and immediately do a cash out refi.

@Peter Tverdov it depends on going wages in your marketplace.I would imagine labor costs are much higher in NJ than in MI.

For example, you might agree to a 70/30 or 60/40 split, depending on his level of involvement.

Options like conventional loans (3% down), FHA loans (3.5% down), and even no-down-payment options like VA or USDA loans could work for you, depending on your eligibility.

Or, depending on the property you could go non-QM with like a DSCR loan and close in an LLC or partnership.

@Michael Whitman , it would totally depend on the company, but you make a great point.

Rents should be a modest $1500 per side, depending on the time of year I’m able to get it on market.

That being said, this depends on your overall financial situation.