Posted by Jason (SC) on September 23, 2004 at 17:23:35:
It seems to me that if you are looking for appreciation there are a lot of better places to look?
I don’t think we have any “storage condos” around where I live or either I have not heard about them. We have the regular storage rentals, which you can build pretty cheap. I’ve helped out building a few of these myself.
I have been to a few of these auctions, I wonder how long you have to wait before having one of these?
Storage Condo - Posted by fun bob
Posted by fun bob on September 23, 2004 at 15:29:49:
Locally I have been hearing about some individual storage units for sale in a nice suburb of Minneapolis. Great location.
My though was that an investor could purchase and rent them out. A 240 sq foot spot goes for $18000 with a annual tax of $516 and an association fee of $21 a month. The spot should rent for $200/ month.
I figure that makes for a cash flow of $136 and a Cap Rate of 9%. I know, I included no vacancies.
So anyway, I have the cash to by several of these units. How is this for a little investment? What appreciation could one expect over the years (in comparison to local market)?
Re: Storage Condo - Posted by Jim FL
Posted by Jim FL on September 23, 2004 at 17:04:33:
Bob,
I’d go over to the commercial forum and post this.
There are folks posting on that board that have experience with this type of investment.
I seem to recall Ed Garcia, or maybe it was Ray Alcorn talking about these before.
I’m looking at one myself now, a smaller one, stand alone, with a manager apartment in the main building.
If the numbers work out, which so far they do, I’m going to buy it.
Seems like a nice place to put some profits to work.
I have my lawyer looking into the legal aspects of running one now.
Check your local laws as well.
I know these places post auction notices for non paying tenants possessions in the paper, so there is specific law as to how certain things must be handled.
Also a nice way to make some money, if you get to keep the profit from selling this stuff.
When in Illinois, I bought appliances and power tools at these auctions for great prices, but noticed the managers/owners always made out well cash wise at the end of the auctions.
I’d not buy for appreciation, but look to see how the place performs instead.
This to me would be the determining factor in a value judgement for the place, would it not?
Good luck if you decide to buy some of these.
I’ve wanted one or a few for some time now, just took me a while to find one for sale, and priced right.
Take care,
Jim FL
Re: Storage Condo - Posted by fun bob
Posted by fun bob on September 23, 2004 at 17:25:41:
Thanks for the feedback Jim. I would hope that as the rents rise the
price would too. Hopefully more will respond.