Return on Investment for Self Storage Facilities
You can expect the return on investment for self storage facilities to exceed normal real estate return — that’s why Wall Street investors began getting into the business a few years ago. Self storage facilities give you an opportunity to invest in a thriving business that doesn’t require hands-on attention. You can be an absentee owner, as long as you engage in due diligence up front, plan well, and find a good manager or management firm to run day-to-day operations.
Cash Flow in a Self Storage Business
It usually takes 1 to 3 years before you can expect positive cash flow. So make sure you’ve budgeted for anticipated operating expenses during the lease-up period until you reach positive cash flow status.
