How Much Money Do You Really Need to Get Started in Self Storage? (2025 update)

The economy today feels like it's walking a tightrope. Inflation, soaring debt, interest rate hikes, and supply chain instability have all become part of everyday headlines. In times like these, it’s easy to feel powerless. But the truth is, there’s one thing that can give you a real sense of control over your financial future: owning the means of production.

For many people, self storage has become a surprisingly accessible and profitable way to do just that.

Let’s unpack how self-storage can offer financial stability, why it’s so relevant right now, and how much money you actually need to get started in this business.

Why This Economic Climate Demands Ownership

Over the past few decades, the U.S. has moved away from producing its own goods. Industries outsourced operations in the name of globalization, and as a result, a massive portion of our productive capacity now sits overseas. It was all fine until the cracks started to show.

When COVID disrupted global trade, everyday essentials suddenly became hard to get. It wasn’t just toilet paper—it was everything from semiconductors to pharmaceuticals. The lesson became clear: when you give up control of production, you give up resilience.

The government’s response was to print money. Trillions flooded the system. Asset prices surged, inflation soared, and everyday purchasing power took a major hit. Now, interest rates are rising to combat inflation, and businesses and investors alike are feeling the pressure.

So what can you do?

You can own. Not stocks that may tank with market volatility. Not speculative crypto. But real, cash-producing assets that you can operate and control.

That’s where self storage comes in.

Why Self Storage Is a Powerful Asset

Storage is simple. It’s operationally driven. And most importantly, it’s still accessible to individual investors. Unlike apartment buildings or massive commercial projects, you don’t need institutional money to get started. Many deals are still under $1 million and owned by local operators.

The key to self storage is understanding how value is created. Unlike residential real estate, which is often priced based on comps, storage facilities are valued based on performance. Specifically, they’re valued based on Net Operating Income (NOI).

When you improve performance by increasing rents, adding technology, or cutting expenses, you increase the value of the property.

That means you don’t have to wait for the market to go up. You can create equity by running the business well.

The Formula That Drives Facility Value

Here’s the basic equation used to determine the value of a storage facility:

Revenue – Expenses = NOI
NOI ÷ Market Cap Rate = Facility Value

So if your facility brings in $150,000 a year and your expenses are $50,000, your NOI is $100,000. If the market cap rate is 7%, your property is worth roughly $1.43 million.

It’s a numbers game, and one you can influence directly by improving operations.

Now that you understand how value is created, let’s get to the main question.

How Much Money Do You Need to Start in Self-Storage?

The amount you need depends on three main factors:

1. The size and condition of the facility
2. Your financing options
3. Whether or not you’re bringing in partners
   

Let’s break this down into different deal sizes to make it easier to understand.

Entry-Level Facility: less than $1,000,000

These are usually small, rural facilities that are under-managed and have a lot of upside potential. They often come with no tech, minimal marketing, and absentee owners. That’s good news for you, because it means there’s a lot of room for improvement.

If you’re buying a facility for $600,000, you’ll typically need 25 to 30% down (but SBA loans can go as low as 10%). That’s $150,000 to $180,000 in cash. You’ll also need extra for closing costs, reserves, and any upgrades—so budget another $20,000 to $50,000.

But here’s the key: you don’t always have to pay market price.

We once bought a facility in this range with seller financing. The owner had never raised rents, and the business was running on pen and paper. We put 20% down and made payments directly to the seller. Within a year, we had increased revenue, added autopay, improved occupancy, and doubled the NOI.

This isn’t uncommon. Small facility owners are often open to seller financing, especially if they’re older or ready to retire.

Mid-Sized Facility: $1 Million to $5 Million

This is where you start to see more stabilized operations, but there’s still a ton of upside. These facilities are in growing towns or secondary markets and usually have some level of automation already in place.

To buy a $2 million facility, you’ll likely need a 25% down payment, or $500,000. You can use an SBA 7(a) loan, a 504 loan, or a commercial real estate loan through a local credit union.

If that price tag sounds out of reach, remember that partnerships are always on the table. In our own business, we’ve structured deals where we brought the operations and management expertise, and our partners brought the capital.

You don’t have to be the one with all the cash—you just need to bring something valuable to the table.

Large Facility or Conversion: $5 Million+

At this level, you’re either buying a large stabilized facility or building one from scratch. These deals involve higher risk, more capital, and often require working with institutional lenders or private equity groups.

We’ve done deals in this category, including converting a massive Super Kmart into a high-performing facility. But we didn’t start there. Our first facility was $600,000, and we scaled from there.

If you’re just getting started, focus on a manageable project with proven potential. Then grow as you gain experience and confidence.

What If You Don’t Have $150,000 to Start?

Many people are intimidated by the idea of needing six figures just to enter the game. But the truth is, you can get creative with financing.

Here are some common ways people reduce their upfront capital:

• Seller financing – Negotiate with the owner to carry the note
• Private investors – Bring in a capital partner who funds the down payment
• SBA loans – Especially helpful for owner-operators, with as little as 10% down
• Partnerships – Split ownership and tasks with someone who complements your skill set
  

You can also look for smaller deals. Not every facility is in a high-growth city. Many successful investors have built wealth by buying small facilities in rural markets and improving them.

Don’t let the dollar amount scare you off. If you can add value, there’s almost always someone willing to fund the project with you.

What Kind of Facilities Should You Target?

If you’re new to the business, here are the types of facilities that make sense:

Facilities With Poor Management

These are often owned by individuals who aren’t using modern tools. They may not have a website, use autopay, or optimize pricing. That gives you a major advantage.

Even small operational improvements, like adding a credit card processor or automated gate access can significantly increase the value of the property.

Properties With Room to Expand

Look for facilities with additional land. The ability to build more units later is a huge value-add. It lowers your average cost per unit and lets you scale without buying a new property.

Facilities That Aren’t Marketing Themselves

If the facility doesn’t rank in Google Maps or has no online presence, it’s likely underperforming. By simply improving its digital footprint, you can drive more leads and increase occupancy.

What to Avoid

• New development projects unless you have deep experience
• Facilities in oversaturated markets with declining population
• Multi-story urban properties that are expensive and complex to operate
  

Start with something simple, fix what’s broken, and grow from there.

Why Self-Storage Works in Any Economy

One of the things that makes storage so compelling is its resilience. During tough times, people downsize and need storage. During good times, people buy more stuff—and need storage.

It’s also a fragmented industry. More than half of self storage facilities are owned by small operators, not national REITs. That means there’s still plenty of room to add value and compete.

When you run a facility well, you can:

• Raise rents annually
• Automate operations
• Reduce tenant churn
• Offer ancillary products like insurance or packing supplies
  

And all of that directly increases your NOI—and therefore your equity.

A Practical Framework for Getting Started

Here’s what I recommend to anyone serious about building wealth through self storage.

Own Something That Produces

Whether it’s a storage facility, a digital product, or a service-based business, the goal is the same: own something that creates value. Don’t rely on wage income or speculation. Build equity through production.

Avoid Speculation

Too many people chase asset prices hoping they’ll go up. That’s a dangerous game, especially in a volatile economy. Focus on fundamentals. If it doesn’t cash flow, don’t buy it.

Understand the Numbers

Learn how to analyze deals. Know your operating expenses, cap rates, and financing options. The more fluent you are in the numbers, the better your decisions will be.

Build Partnerships

You don’t have to do this alone. Whether you’re short on time, money, or experience—find people who can fill the gap. Many of our best deals came from partnerships.

Start Small, Then Scale

Don’t wait for the perfect $5 million opportunity. Start with a small deal, prove the model, and then use that momentum to grow.

You’d be surprised what you can accomplish in five years with just one good facility under your belt.

Final Thoughts

The economy is evolving fast. Debt is rising, inflation is eroding savings, and institutions are consolidating power. If you want to maintain independence and security, you need to control the sources of your income.

Self storage is one of the most approachable ways to do that. It’s a business you can understand, improve, and scale. It’s based on real people with real needs, not speculation.

You don’t need millions to get started. You need initiative, a willingness to learn, and the courage to take that first step.

Because once you own the means of production, you’re no longer at the mercy of the economy. You’re building something real, something that lasts.