293. I Bought a FAILING Self Storage Facility

Key Takeaways:

Tyler and Jacob bought a failing self-storage facility for $1.7 million, with the goal of turning it around through operational improvements.

The facility was advertised as 95% occupied, but was actually only 66% occupied when they took over. This was a significant discrepancy.

The property had a poor reputation with many negative reviews, so Tyler and Jacob plan to focus on improving customer service and rebuilding trust.

They see opportunities to add 30-40 additional storage units, which could increase the property's net operating income by 30-40% within 12-24 months.

They plan to be relatively stabilized by the end of the year, and may be able to finish the project in 2-3 years instead of the initial 5-year timeline.

Key next steps include conducting a cost segregation study, improving operations, raising prices, and deciding whether to keep the existing business name or start fresh.

Overall, the focus is on operational value-add strategies to turn around the failing facility, rather than major capital expenditures.