If you haven’t had the opportunity to network with any parking garage investors, you may not know about the benefits that this type of investment represents. While it’s true that there are risks similar to those of any real estate investment, there are also unexpected advantages that make investing in parking garages worthwhile. Here are some factors that help mitigate the risks of investing in parking garages.
Little or No Money Down
Depending on the location of the parking garage, there are very low startup costs associated with the investment. While high-end areas in major cities can cost more, the average business district parking garage in a city like Chicago may only cost around $25,000. This means you can buy the garage outright without having to worry about a down payment.
Low Maintenance Costs
You’ll also find that the upkeep requirements are lower than those associated with other types of commercial real estate. Other than maintaining the condition of the blacktop or concrete and keeping the striping fresh, you’ll have little in the way of maintenance obligations.
Steady Stream of Income
Parking garage investors have a much better opportunity for maintaining a steady stream of passive income because each parking space is its own source of revenue. This means you can operate your garage with some of the spaces empty and still generate enough income to result in a profit. If you find that a large number of spaces are consistently empty, you have the choice of converting some of the space into long-term rental units for storing vehicles.
When you’re ready to explore the lucrative potential of investing in parking garages, visit Parking Advisors, Inc.