Is Self-Storage Good for Passive Income?
Are you interested in investing in real estate? Do you want to own a profitable real estate business without dealing with tenant complaints or the other hassles that occur with managing rental properties? If you answered yes to either question, investing in a self-storage unit facility may be your perfect passive income solution. With self-storage operations, you can enjoy high returns and low maintenance to earn significant profits.
What Is Passive Income?
Passive income is earning profits from a rental property or enterprises such as limited partnerships, in which the earner is not actively involved. Like active income, passive income is taxable but often under different regulations from the Internal Revenue Service (IRS).
Why Self-Storage Is the Best Real Estate Investment for Passive Income
While any real estate investment has risks, some investment opportunities, such as self-storage, are safer than others. Learn about the additional reasons why self-storage is a good investment for passive income.
High Demand
Consumers are buying more at higher rates due to online shopping. Many people are turning to self-storage to store their purchases or other items as they downsize or go to school.
Multiple Business Opportunities
When you invest in storage units, you have the potential to earn additional revenue in addition to the rent you collect on each storage unit. One popular way to earn extra income is offering moving services such as trailers and trucks and making your business a one-stop shop for customers.
Large Income Potential With a Low Overhead
Unlike traditional rental properties, self-storage units have fewer building components that may require maintenance, such as toilets or broken pipes. When a tenant leaves a storage space, at most, you’ll have to sweep out the area for the next tenant.
Greater Tax Benefits and Cash Flow
Investing in self-storage provides cash flow and tax benefits that will benefit the high-income earner. Investing in self-storage also helps you take advantage of depreciation.
How to Generate Passive Income With Self-Storage
There are three main ways one can start earning passive income from self-storage.
1. Direct Ownership
If your goal is to earn passive income while working full-time, owning a self-storage unit may be your best investment option. Before purchasing a self-storage unit, it’s essential to consider aspects such as building, construction and land costs, as well as perform a market analysis to learn more about the potential of your business.
2. Investing in REITs
Another method for investing in self-storage units is a real estate investment trust (REIT). One of the main advantages of REIT investing is that you’ll have access to your money at any time, so you can buy or sell shares to increase funds.
3. Syndications
Passive syndications are group investments that allow you to invest while benefitting from many tax advantages.
Invest in Self-Storage With Investment Real Estate, LLC Today
As one of the few companies in the U.S. that offer many brokerage and feasibility services, you can rely on Investment Real Estate, LLC to provide an unmatched experience level. With over 500 successful transactions under our belt, we’ll help you take the first steps in investing in self-storage. To learn more about how we can help you start generating passive income, contact a member of our team today!
