Investing, Real Estate

Storage Units Are the Sleeper Hit of Real Estate Investing

June 30, 2025 Comments Off on Storage Units Are the Sleeper Hit of Real Estate Investing

The most boring investment you’ll ever love.

No tenants.
No toilets.
No drama.

Just space, demand, and recurring income that shows up like clockwork.

In a world full of chaos, storage units are the low-maintenance, high-margin real estate flex that no one’s talking about—but everyone should be investing in.

🔥 Why Self-Storage Is Quietly Crushing It

🧳 1. Downsizing, Relocating, and Hoarding (Oh My!)

People are moving, merging households, going remote, and launching side hustles. That means:

  • More stuff than square footage
  • More need for flexible, secure storage
  • A growing group of people who’ll gladly pay $100/month to not look at their clutter

Data drop:
Over 11% of U.S. households currently rent storage. That’s 30+ million renters looking for a space like yours.

🧼 2. Lower Maintenance Than Literally Everything Else

No leaky sinks. No late-night tenant calls. No property manager drama.

Your biggest “emergency”?
A broken keypad. Maybe a missing lock.

Maintenance costs are typically 25% or less of gross revenue, and most facilities can be managed with:

  • 1 part-time employee, or
  • An automated system and call center

💰 3. Recession Resistance Built In

Storage thrives in economic downturns. Why?

  • People move in with family = more stuff, less space
  • Businesses downsize or close offices = equipment to store
  • Renters transition between leases = storage lifeline

In fact, self-storage outperformed nearly every other asset class during the 2008 crash and again in 2020.

📊 Storage Unit Math: The Cash Flow Breakdown

Let’s say you own a 100-unit drive-up facility in the suburbs:

UnitsMonthly Rent (Avg)Gross Income
100$120$12,000/mo
$144,000/year

Operating costs: ~$36K/year
Net income: ~$108,000/year

💥 And that’s just one facility.

Add boat/RV storage or climate-controlled units and that number climbs even faster.

🛠️ Step-by-Step: How to Get Started

✅ 1. Buy Existing

Target tired mom-and-pop owners with:

  • Poor websites (or none at all)
  • Manual rent collection
  • No security or automation

Add tech, raise rents, and increase NOI fast = massive equity jump.

✅ 2. Convert or Build

Use:

  • 🏚️ Old warehouses
  • 🧼 Car washes
  • 🛢️ Shipping containers
  • 🏗️ Empty commercial lots

Prefab kits are available that can launch in weeks, not months.

Look for:

  • 1–3 acre lots near growing subdivisions
  • Traffic flow of 10,000+ vehicles/day
  • No major competitors within a 3–5 mile radius

💸 Funding Your Storage Facility

Great options include:

  • 💼 SBA 7(a) loans (yes, the government loves funding storage)
  • 💰 Commercial bridge loans (for conversions or rehabs)
  • 🧾 Seller financing (tired landlords may carry the note)
  • 💸 Private capital (investor partners or syndications)

📍 Where Storage Is Heating Up Fast

Target suburban zones with:

  • New residential developments
  • No basements (increased off-site storage need)
  • HOAs banning RVs, boats, or extra vehicles
  • Blue-collar neighborhoods (tradespeople, business owners with inventory)

Use tools like Radius+, Yardi Matrix, or Crexi to search markets and find off-market facilities.

🧠 Tools to Automate & Elevate Your Facility

  • Storable – All-in-one management & CRM
  • CallPotential – Automated lead follow-up & payment collection
  • DaVinci Locks – Remote code access + lockout management
  • OpenTech Alliance – Self-service kiosks & smart gate tech

You can run a six-figure facility from your phone.

🔁 Easy Expansion = More Equity

Have extra land? Add:

  • More drive-up units
  • RV + boat storage (highest demand in the suburbs)
  • Containers for rapid expansion
  • Solar panels to offset utilities and earn tax credits

Unlike multifamily, storage is modular—grow it like Lego blocks.

🎯 Bottom Line:

Storage might not trend on TikTok, but it’s:

  • Low-risk
  • Low-touch
  • And extremely profitable

The house hack pays your mortgage.
The flip pays your bills.
But the storage facility funds your freedom.

🚀 Ready to Break Into Storage?

We’ll help you:

  • Find the right suburban market
  • Analyze the numbers the smart way
  • Build or convert on a budget
  • Fund it creatively and automate it like a pro

👉 Join our next intro session and learn how to turn square footage into serious stacks.

Nanci Rowe is a passionate entrepreneur, real estate investor, and a founding member of the Real Deal Network—a thriving community helping people build wealth through education and connection. With nearly two decades of experience, she’s dedicated to making real estate investing approachable and creating spaces where people feel supported and empowered.

When she’s not closing deals or coaching entrepreneurs, you’ll find her planning unforgettable adventures, geeking out on personal growth, or spending time with her family—always with purpose, passion, and a touch of sparkle.

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