Self storage investing offers a simpler, higher-margin alternative to traditional rentals—with fewer tenant issues, low maintenance, and steady cash flow. Unlike what you currently receive with a 50% VA rating, which may offer limited financial flexibility, self storage can generate predictable, scalable income—even for beginners. With lower entry costs and recession resilience, it’s a real estate play that flies under the radar but delivers big.
If you’re like a lot of folks I talk to, you probably want to:
- Make real estate investing simple
- Own property without dealing with crazy tenants
- Cash flow without losing sleep
- Get in without needing to be a millionaire
That’s why I started paying attention to self storage. It’s a boring business that prints money if you do it right. And boring works. Stick with simple and repeatable, and you’ll win long term. Let me walk you through how this real estate investing playbook looks with storage units.
Why Self Storage Crushes Other Real Estate Investing Plays
Let’s not dance around. Real estate investing is all about one thing: cash flow. And storage units? Most of them don’t have plumbing. HVAC? Rarely. Tenants? Technically, no. People just rent space to throw old furniture, skis they forgot they had, or fifty boxes of family photos they won’t look at again. No toilets to fix. No tenant drama. No kitchens to upgrade. Now, compare that to someone renting out a house. That renter calls about leaks, argues over deposits, and maybe bails with no notice. Even with great property management, things get messed up. Storage tenants? They just pay. Or they don’t. And if they don’t, you lock them out and auction the stuff. Brutal? Maybe. But that’s the game.
How Real Estate Investing with Storage Pays Off
Here’s how money rolls in with storage:
- Monthly rental income. Simple and recurring.
- Late fees—people miss payments. You profit from forgetfulness.
- Auctions from defaulted units—pure upside.
- Ancillaries: Boxes, locks, insurance sales = more revenue.
If you’re running a 100-unit place and 90 are filled, you’re sitting real pretty. This model’s stable even in recessions. People downsize and need storage more. And when the economy’s booming? They buy more stuff. Guess where it goes? Storage.
How I Stumbled Into This While Looking for My First Real Real Estate Deal
When I was knee-deep reading blogs on reAlpha, listening to podcast bros hyping house flipping, I saw a thread on a forum: “Self storage got me to $20k/month cash flow in 3 years.” Of course, I thought…total cap. Until I dug in. The numbers added up. Guy bought a rundown facility in a decent part of town. Painted the place. Added digital locks. Raised rates. Made a deal with a local college for summer storage. Overnight difference. Cash machine. I asked: “If it’s this good…why’s no one telling me about it?” Because it’s not flashy. That’s a good thing. No one’s overbidding. Fewer players. Lower barrier to entry. Just how I like it.
Real Estate Investing: Self Storage VS Rental Properties
| Feature | Self Storage | Traditional Rentals |
|---|---|---|
| Maintenance | Low (no toilets, kitchens) | High (constant repairs) |
| Tenant Headaches | Minimal | Big |
| Management | Can be automated | Often hands-on |
| Profit Margins | Higher | Lean |
| Recession Resistant | Yes | Mixed |
Keys to Self Storage Success in Real Estate Investing
Okay, so storage rocks. But don’t flinch—it’s not a 100% no-brainer. There are traps.
If you just throw money at a facility in a ghost town with zero demand, you’ll get burned. Here’s what matters:
- Location. People need to actually store stuff nearby. Check demand indicators.
- Security. Cameras. Fences. Gates. All that lets you bump rates.
- Management software. Get automated systems. Payments on autopilot.
- Marketing. Google Business Profile. Local SEO. People search “storage near me.” Be there.
- Unit mix. Variety matters. 10’x10’, 5’x5’, climate-controlled? Know your renters.
Real Real Estate Investing Is About Buying Right
You build wealth when you buy right, not later when you “fix things.”
I look for this when I’m scouting a facility:
- Under rented vs competitors nearby? Raise rates.
- Physical vacancy sitting at 50%? Easy win if demand’s there.
- Mom & pop owners with zero tech? Bring in automation = higher NOI = better valuation.
This is the kind of real estate investing that punches above its weight class. It flies under the radar, just how I like it.
How Much Does It Cost To Get In?
You don’t need millions. I’ve seen turnkey setups go for $150K in small towns and $500K+ in suburbs. Partner with someone, structure a JV, or go in small with fractional ownership on reAlpha.
There are ways to tap in. All that matters? Get in smart. Run the math. Own the numbers. Predictable yield—that’s the whole play.
FAQs
Is self storage a good investment for beginners?
Yes—especially because it’s simpler to manage than apartments. Just be sure you do your homework on demand, don’t wing it.
What kind of returns can I expect?
Typical net returns can range from 8–15%, sometimes higher depending on how operationally lean you run it and if you bought under market value.
Can I use financing to buy a facility?
Absolutely. SBA loans, traditional lenders, seller financing—lots of options. Some even allow 10% down.
What if a tenant stops paying?
You lock the unit, post a notice, and if they still don’t pay after the legal time period—you auction their contents. No court evictions needed.
Should I invest passively or own the whole thing?
Depends on you. If you’ve got time and want more upside, own it. If you want pure hands-off, look at investing passively through platforms like reAlpha.
Conclusion:
The crazy part? I’ve met people who went from corporate 9-5 to semi-retired in 4 years—all through this type of real estate investing. It’s not rocket science. It’s just consistent execution. If you’re tired of real estate investing being all hype and zero predictability, look into storage. Start smart. Go small if you have to. Stack W’s. Then scale. That’s how real estate investing wins with self storage.