130 | Self Storage Investing: Cash Flow, Tax Benefits & 1031 Exchanges Explained with Joe Downs

130 | Self Storage Investing: Cash Flow, Tax Benefits & 1031 Exchanges Explained with Joe Downs

May 5, 2026 · 52 min · Episode 131

About this episode

Patrick Lonergan interviews Joe Downs about self-storage investing and its benefits.

In this episode, host Patrick Lonergan sits down with self-storage investing expert Joe Downs, entrepreneur, operator, and founder of The Storage Moguls, to make the case for one of the most overlooked recession-resistant real estate asset classes available today. With 80% of U.S. self-storage facilities owned by mom-and-pop operators, Joe explains why secondary and tertiary markets are overflowing with undervalued acquisition opportunities for investors willing to do the work. He breaks down three entry points - fully passive investing, hybrid owner-operator with third-party management, and active operator, showing how self-storage can generate meaningful passive real estate income with far less operational burden than traditional multifamily. Because self-storage facilities are operating businesses on commercial real estate, they qualify for SBA loans (7(a) and 504), giving investors access to favorable long-term financing that most residential strategies can't touch. Joe and Patrick also dig into the full wealth-building stack available to self-storage investors: appreciation, cash flow, loan amortization, depreciation, and the powerful tax benefits unlocked through cost…

People in this episode

Host: Patrick Lonergan

Guest: Joe Downs

Topics covered

Mentioned in this episode

Organizations: The Storage Moguls

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