Real Estatemedium risk

Storage Units: Boring Business with 25% CoC Returns

Q: How much does a storage facility cost?

Small facilities (50-100 units) in secondary markets sell for $200K-$800K. Value-add deals where occupancy is below 70% offer the best returns but require more work and capital for improvements.

Q: Is self-storage really recession-proof?

Historically, yes. Demand actually increases during downturns as people downsize homes. REITs like Public Storage barely dipped during 2008-2009. However, oversupply in some markets is a growing risk.

Q: Can I operate a storage facility remotely?

Modern facilities run on autopilot with smart locks, automated billing, and security cameras. Many operators manage facilities 100+ miles away with a part-time on-site manager handling maintenance.

Written by

Jake Hartley

Real Estate, Micro-Business, Side Hustles

Self-storage: top real estate performer with 25%+ returns. Small operators boost profits with climate control & digital marketing. Start investing today!

Last verified: 3/1/2026

Key Details

Capital Required

$50K–$200K

Time Commitment

10-15 hrs/week

Skill Level

intermediate

Risk Level

medium

How to Get Started

1
Study the fundamentals — read 'Crushing It in Apartments and Commercial Real Estate' and listen to the Self Storage Income podcast
2
Analyze your target market — look for areas with < 7 sq ft of storage per capita (national average is ~6)
3

Find deals through LoopNet, direct mail to facility owners, or broker relationships

Underwrite conservatively — verify income through bank statements, not just tax returns

Secure financing (SBA 504 loans are ideal for storage) with 10-20% down

Implement value-add: raise rates to market, add climate-controlled units, improve online presence and Google reviews

Frequently Asked Questions

How much does a storage facility cost?

Small facilities (50-100 units) in secondary markets sell for $200K-$800K. Value-add deals where occupancy is below 70% offer the best returns but require more work and capital for improvements.

Is self-storage really recession-proof?

Historically, yes. Demand actually increases during downturns as people downsize homes. REITs like Public Storage barely dipped during 2008-2009. However, oversupply in some markets is a growing risk.

Can I operate a storage facility remotely?

Modern facilities run on autopilot with smart locks, automated billing, and security cameras. Many operators manage facilities 100+ miles away with a part-time on-site manager handling maintenance.

Disclaimer: This analysis is AI-generated for educational purposes only. It is not financial, investment, or legal advice. Always conduct your own research and consult qualified professionals before investing.