246. Self Storage vs. Rental Property Investing (It’s Not Even Close)
Self Storage Income
AJ Osborne
4.9 • 591 Ratings
🗓️ 28 May 2024
⏱️ 26 minutes
🧾️ Download transcript
Summary
Self storage investing vs. multifamily investing: Which wins in 2024? With the popularity of rental property investing rising over the past few years, competition has remained hot for beginner investments like duplexes, small multifamily properties, and house hacks. But if you’re looking to grow your money the most, is self storage a better pick? Would you rather deal with a few tenants and toilets or hundreds of customers simultaneously?
We’re breaking down each of these investments piece by piece, from the prices to buy each investment property to raising the property value, cash flow, evictions, auctions, competition, appreciation, and more. Both self storage and multifamily real estate have huge benefits for those willing to put in the work, but is the stress of a midnight toilet call from your tenant worth the benefits that residential real estate provides?
Plus, if you think you don’t have the money to buy a commercial real estate investment, think again. We’ll share examples in this episode of how you can buy a self storage facility for less than a duplex in your area. Don’t believe us? Stick around, and we’ll show you precisely what we mean!
What you’ll learn in today’s show:
- Residential real estate vs. self storage investing and which is a better buy in 2024
- Property price differences and how it may be even cheaper to buy a self storage facility in your area
- More units = more problems? Why it’s easier to have a hundred customers than ten tenants
- Evicting tenants and the considerable benefit self storage has that multifamily can’t beat
- Forced appreciation and how to use self storage to boost your wealth
- Multifamily vs self storage competition and which is easier to buy in today’s market
Transcript
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| 0:00.0 | It's shocking, I think, that you get these benefits at a lower price point in lots of markets. |
| 0:05.6 | The equivalency of what you're getting for what you're paying and how that asset business underwrites and how it performs and what you can do to it, |
| 0:15.4 | they're not even remotely close to the same investment when you're talking about a return on your capital. |
| 0:29.3 | Welcome everybody to self-storage income. And today we have an interesting topic, one we haven't touched on, but I should say that I spoke |
| 0:41.9 | about this very topic in Denver. |
| 0:44.9 | And that was comparing storage to other real estate investment types, particularly |
| 0:49.4 | like duplex. |
| 0:50.4 | And the reason why, the reason why we brought this up and why I talked about in Denver was |
| 0:54.0 | I was on stage and I pulled it up and I pulled it up, said, let's look here at all of the listings. |
| 1:02.7 | So it jumped on Zillow or Redfin or whatever it was and said duplexes near me, right? |
| 1:08.4 | And the first one, you know, 1.3. The next one, 800,000. The next one, |
| 1:14.2 | 1.6, and so on and so forth. And then I said, okay, well, why don't we look at storage facilities |
| 1:20.8 | that were under 20,000 square feet? Still way bigger than any duplexes. |
| 1:27.9 | Right. |
| 1:33.9 | And so we pulled that up and it was first one, 300,000. |
| 1:36.4 | Next one, 500,000. |
| 1:42.1 | The next one, you know, all under anything the duplexes had even shown for. And that was enlightening to the audience, right? It was like, |
| 1:49.5 | wait a second. Um, what, right? Yeah, I think a lot of people think, first of all, |
| 1:56.1 | storage commercial assets, it's this huge investment, big buildings on and on and on. And it's not |
| 2:03.7 | that that's not true. Of course, there is that, but there is a wide scale. And I think this |
| 2:09.7 | podcast, we kind of wanted to look at the comparison and talk about those two different things and what are the differences, maybe the |
| 2:21.3 | pros and cons, and what it takes to invest in a small stores facility. |
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