How To Achieve Financial Freedom With Small Storage Facilities
Hey there,
If you’ve been on the fence about jumping into self storage - especially small facilities - this email is for you.
I get asked all the time if buying small facilities is a good vehicle to wealth. That’s why I want to talk about this right now.
Today, I’m going to walk you through the real economics of small self storage facilities, from someone who's in the trenches every day (not just building a portfolio, but helping others do the same through our community).
Let me start with this: small storage facilities can be incredibly profitable, but only if you understand what you’re doing and why you’re doing it.
Alright, let’s dive in.
The Real Upside (It’s Not What You Think)
When people buy homes or rental properties, they typically hope the market will push values up over time. You’re basically betting on appreciation. But with storage, that dynamic flips. You don’t have to wait on the market. You create value by increasing income.
And that’s what drew me to storage. I wasn’t a construction expert, I didn’t want to flip homes, and honestly, I didn’t want to be in a situation where I had to evict a single mom with kids. With storage, the units don’t talk back, don’t use toilets, and if someone doesn’t pay, I don’t face the heavy emotional toll of evicting them (it’s just their stuff).
In short: storage is more operationally flexible, and that gives you control - especially in volatile markets.
So, Should You Start Small?
I believe 100% yes. Small storage facilities - like 50- or 60-unit properties in the $200K–$300K range - are one of the best entry points into commercial real estate. They're accessible, they cash flow, and most importantly, they teach you the business hands-on.
Take one of our community members Elizabeth and her husband. They bought their first facility for $250,000 using a conventional loan. Within a few months, it was already cash-flowing $1,000/month. Sure, that’s not “quit your job” money. But it’s definitely “sleep better at night” money. And more importantly, they now have a repeatable model. Just imagine doing that 5 or 10 times over. Now you are entering the realm of “quit your job” money.
Or consider Jyoti and Darren. They owned three facilities but realized their third-party manager wasn’t cutting it. They took over operations, cut expenses, increased revenue, and added $300,000 in value to their portfolio - just by improving management.
Everyone’s Path Looks Different
This isn’t a one-size-fits-all game. Some people want to replace a day job. Others want their spouse to stay home. Some just want tax benefits or a side hustle they don’t hate.
Whatever your WHY is, it will determine what kind of deal is “good” for you. And unless you define that WHY, you won’t know what success looks like.
(That’s why in our community, we don’t just ask, “Is this a good deal?” We ask, “What does a good deal mean to YOU?”)
Storage vs. Everything Else
Let’s take a quick step back and compare storage to other real estate asset classes:
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Single-family rentals: One tenant, one rent check, big risks if they move out or stop paying. Plus, repairs and tenant interactions are a real headache.
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Airbnb: Can be profitable, but the guest experience is demanding. One bad review can tank your listing. You're not running a rental - you're running hospitality.
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Commercial triple-net: Long-term leases, low effort, but zero flexibility. You're stuck with what you signed, and rent bumps are slow.
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Storage: Monthly contracts. High-margin. Dozens (sometimes hundreds) of tenants, which spreads out risk. No toilets. And - this is a big one - you can get very creative with revenue management.
Storage is also scalable. You can go from 50 units to 100 or 200 units, increase rents, add insurance, clean up delinquencies, and suddenly double your income without adding another property.
It’s Not Just About Cash Flow
I want to make this clear: storage isn’t just about monthly income - it’s also about equity. In commercial real estate, value is tied to Net Operating Income (NOI). That means every dollar you add to NOI directly increases your property’s value.
Raise revenue, cut costs, improve collections - your equity grows, often dramatically.
Beware of These Common Mistakes
Now, let me be real with you. Not all small storage deals are gold mines. Some can be money pits if you don’t underwrite them correctly. Here’s what you need to watch out for:
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Understated expenses: Owners may “forget” to include things like management time, maintenance, or marketing. If they are running those things themselves, they leave it off because they don’t “pay for it.” But unless you plan on doing those jobs, you will have to pay for it. Bottom line: if it sounds too profitable, dig deeper.
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Outdated tax assumptions: Taxes usually reset when you buy. If the seller’s taxes are low, yours won’t be. Always calculate new taxes based on purchase price.
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Misleading automation promises: Just because it’s “automated” doesn’t mean it’s hands-off. You’re just moving operations from the front desk to the back end. Someone still has to answer the phone.
Always underwrite conservatively. I recommend assuming at least 35-40% in expenses for small facilities. If it turns out to be lower, great - you’ve got more upside. But if it turns out to be higher, you won’t be underwater.
One More Thing: Financing is Better Than You Think
You can get into a small facility with as little as 10% down using an SBA loan. These loans are tailored for small business investments - and yes, banks treat storage as a business. That means lower down payments and better terms for investors who qualify.
Compare that to a standard residential investment, which might require 20-35% down - on a property with fewer levers to increase value - and storage starts to look even better.
Final Thought: Start Where You Are
Look, you don’t have to go out and buy a $2M facility on day one. You don’t even have to buy something with 100+ units. You just need to start.
Whether your goal is $1,000/month in extra income, building long-term equity, or creating financial freedom - storage can get you there. And it starts with your first deal.
I got into this business by answering the phone, asking tenants to pay their bills, and letting people know we existed. That’s it. And to this day, that simple formula still works.
You don’t need a PhD. You don’t need 10 years of experience. You just need a little education, a solid plan, and the right community behind you.
We’re here when you’re ready.
A.J.
