We bought a 30k SF self storage facility in a rural town in December of 2020 for $1,300,000.
It was 100% full. Historical financials were solid: $13k per month every month for the previous 3 years.
First 4 months in the books. Excited about the way this one is performing.
It was 100% full. Historical financials were solid: $13k per month every month for the previous 3 years.
First 4 months in the books. Excited about the way this one is performing.
A little more color here:
We were all in after closing costs and capex at $1,400,000.
We got a loan for $975k (70% LTV) at 4.25% with 1 yr I/O.
The insurance and property taxes you see here are for the year.
We'll spend about $5,500 a month on average the rest of the year.
We were all in after closing costs and capex at $1,400,000.
We got a loan for $975k (70% LTV) at 4.25% with 1 yr I/O.
The insurance and property taxes you see here are for the year.
We'll spend about $5,500 a month on average the rest of the year.
Our revenue will average out at about $18,500 per month the rest of the year. Total revenue around $220k on the yr.
Total expenses at $67,800.
Net operating income: $152,200
Interest at $3,450 / month, $41,400 for the yr. Capital reserves of $12,000.
Total expenses at $67,800.
Net operating income: $152,200
Interest at $3,450 / month, $41,400 for the yr. Capital reserves of $12,000.
This leaves us with $98,800 of cashflow year one.
On our $425,000 of invested capital.
Going-in cap rate of 10.8%.
CoC of 23.24% (will go down a bit year 2 when principal kicks in).
But we'll refinance this at a $2MM valuation and pull all of our initial capital out in 6 mo.
On our $425,000 of invested capital.
Going-in cap rate of 10.8%.
CoC of 23.24% (will go down a bit year 2 when principal kicks in).
But we'll refinance this at a $2MM valuation and pull all of our initial capital out in 6 mo.
It was listed at $1,460,000 and sat on the market for 3 months before we came to an agreement at $1,300,000.
At a $107k buyer pro-forma thats a going-in 8.2 cap.
Here are the broker's numbers and T12 mo performance.
At a $107k buyer pro-forma thats a going-in 8.2 cap.
Here are the broker's numbers and T12 mo performance.
If you're interested in this and want to learn more about NOI and Cap rates and how they work, take this free mini-course I built:
bit.ly/3onjYW8
And for one on debt / cashflow / risk:
bit.ly/3yhuXFk
bit.ly/3onjYW8
And for one on debt / cashflow / risk:
bit.ly/3yhuXFk
Our LPs are excited about both the deal and the new @juniper_square software. 🔥🔥
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