Investment Benefits

Why Buying a Storage Condo is a Good Investment

  •  High Demand: With the growing number of recreational enthusiasts and small
    businesses in McCall, the demand for luxury storage is expected to rise. Investing now allows buyers to capitalize on this trend.
  • Appreciation Potential: Real estate in McCall is on the rise. Purchasing a storage condo in a prime location can lead to significant appreciation over time.
  • Diversification: Storage condos offer an excellent opportunity to diversify investment portfolios, providing a hedge against the volatility of stocks and traditional real estate.
  • 1031 Exchange Benefits: A 1031 exchange allows investors to defer capital gains
    taxes by reinvesting proceeds from the sale of an investment property into a like-kind property, such as a luxury storage condo. This can enhance long-term financial returns and reduce tax liabilities.

Options for Storage Owners

  • Rental Income: Owners can rent out their units, generating a steady stream of passive income. This can offset the cost of ownership and provide a significant return on investment.
  • Personal Use: Use the condo for personal storage needs, freeing up space at home or in business locations. This is especially beneficial for seasonal residents or those with recreational equipment.
  • Small Business Storage: Storage condos can serve as storage for inventory or equipment, a solution for small businesses facing space constraints.

Financial Analysis

Investment Overview

  • Initial Investment: $285,000
  • Rental Income: Historical rent $1,800 monthly per unit, can vary based on amenities.
  • Maintenance: Annual expenses forecasted at 1-2% of the purchase value, potentially more cost-effective compared to similar real estate ventures. 
  • Appreciation estimate: Potential growth assumed to be 3-5% annually based on market conditions.

Financial Forecast

  • Revenue Outlook: A projected yearly rental revenue of approximately $21,600, based on a $1,800 monthly average.
  • Capitalization Rate: 8.4% based on rental income and growth potential.
  • Investment Recovery: Break-even expected in 8-10 years, factoring in earnings and appreciation.