Self-storage garners sticky tenants. People in this asset class are willing to put up with more rent increases than tenants in other classes. Let’s say an owner increases rent by 6 percent. Self-storage customers paying $100/month aren’t going to take a Saturday to rent a moving truck, get friends together to help them lift things, and relocate all their belongings elsewhere to save $6. But apartment dwellers paying $1,000/month might be motivated to move to save 6 percent.
Still have two. Wish I kept the other 3. Cash cow with no government interference
Why not buy more today? No deals?
There’s no deals anywhere. Just sold my apartments in Sacramento. Nowhere to put money. Tons of cash from REITS searching for deals.
I would rather build my own.
If you want to do 1031, you don’t have much time
A small self storage in SoCal. 4.37% cap. Asking 2.3M.
Self storage in Vacaville, asking 9.8M.
PSA has been on a huge run up. Guessed wrong on that one. REITS are all benefiting from lower interest rates