After running preliminary numbers on the property, I believe I could guarantee a 7-8% return for a cash lender and would still keep roughly 10k annually for myself to run the facility along with online support staff who work specifically in the storage unit industry.  

he said it's the small fee I mentioned to you when we meet, I was in shock and I said I need to verify and I will call him back.

Long term, it can be a tremendous investment but getting to that point is the "sticker shock" that's unsettling in my eyes.  

This assumes no major "shocks" to the economy.

Trust yourself and the process, assuming you've done some preliminary reading on REI and are willing to put in the continued effort to consistently educate yourself.

I might have lucked out on mine as my titling company I hired ran a preliminary report and found no issues with the title.  

The shortage may cause sticker shock to a tenant looking to move into an alternative rental.  

Shocking right?

But whichever it is, go to them and ask for a preliminary title search. 

We are still in the preliminary stages of this and being so new to this situation I wasn't sure if this was a normal structure or not.