Investing in self-storage real estate has become one of the smartest moves for investors seeking both reliable cash flow and significant tax advantages. For investors in Tucson, Arizona, the opportunities are even greater thanks to the city’s rapid growth and favorable market conditions. At Legacy Built, we’ve spent over four decades perfecting our strategy to help investors achieve consistent, above-average returns through self-storage investing.
Understanding the Tax Benefits of Self-Storage Investments
Unlike other types of real estate, self-storage facilities are uniquely structured to provide multiple tax benefits. One of the most powerful is depreciation. The IRS allows investors to deduct the cost of wear and tear on the property each year, which reduces taxable income. This often means earning cash flow without paying taxes on it.
Another key advantage is bonus depreciation, which allows investors to accelerate deductions and offset income from other sources. Combined with cost segregation studies, which break down a facility’s components into shorter depreciation schedules, investors can dramatically lower their taxable income in the early years of ownership.
Legacy Built’s approach to controlling risk and maximizing returns ensures that every project is designed with both stability and tax efficiency in mind.
Why Tucson, Arizona Is a Prime Location
Tucson’s self-storage market continues to expand thanks to population growth, steady job creation, and migration from more expensive cities like Phoenix and San Diego. This demand for storage space creates an ideal environment for investors seeking passive income.
With neighboring areas like Oro Valley, Marana, and Sahuarita experiencing similar growth, Tucson has become a hub for new self-storage developments. These nearby communities further strengthen the region’s long-term investment potential. The city’s strong economic outlook is one of the reasons Tucson continues to grow rapidly and attract smart investors.
The Power of 1031 Exchanges
Self-storage investments also qualify for 1031 exchanges, allowing investors to defer capital gains taxes when selling one property and reinvesting in another. This strategy enables wealth to grow over time without immediate tax consequences.
At Legacy Built, we often assist investors who are moving capital from traditional real estate into self-storage to enjoy both stability and strong after-tax returns. Our performance record, highlighted in our historical investment results, shows just how powerful this strategy can be for long-term wealth creation.
Passive Income That’s Protected
While some investments rely on market timing or stock performance, self-storage has proven to be resilient even in downturns. Occupancy rates tend to remain stable during recessions because people and businesses still need affordable storage space. Combined with tax advantages, this makes self-storage one of the most recession-resistant asset classes available.
Legacy Built’s analysis of self-storage versus other real estate investments demonstrates why this sector consistently outperforms others in both stability and returns.
Building Generational Wealth with Legacy Built
At Legacy Built, we believe in more than just financial returns. We believe in building a legacy that lasts. Founded in 1979 and now led by Tony Ardizzone, our team has developed a system that delivers consistent results through disciplined planning, construction expertise, and smart financial strategy.
Whether you’re new to real estate or an experienced investor, our mission is to help you grow your wealth while taking advantage of the unique tax benefits that self-storage provides. You can learn more about our company’s story and leadership on the About Us page.