26 space RV park in Wash. St

I have spoken to seller on this park. She wants 350k cash no O.F. She says she writes everything off and has no trailing 12 or 24. 70% rented yearly but this year she closed down for first time in 17 years because of bad weather. I know I need some info finance wise but she is older and first call did not want to push it. Probable gross rents are 65 to 75k yearly and expenses are reasonable but she does pay power and water. Low maintenance. Any suggestions and are there any investors that even buy straight r.v. parks? Looks like a 12 to 13 cap but guessing until I get some financials. Help or suggestions would be appreciated. Thx.

Based on your details she is saying is that 18 lots are occupied over the course of a year for $300 per month (using your 65K gross number), but she covers utilities. Depending on the expense ratio you estimate (I would probably say between 50 to 60% based on current operations) that the valuation is closer to $250K or less. The past water and power bills may offer some indicative amount of occupancy over time, but I would probably spend several weekends out there over a 3 month time period to see how actual occupancy stacks up with the collections, assuming it’s a good deal worth your time.

Separately, Frank and Dave offer a course on RV Park investing too. I haven’t seen it, but given the quality of their mobile home offerings I suspect it’s worth a try:

Thanks for response. I was being conservative with gross rents. She stated 400 per month. That puts gross at 86,200 but remember she closed for this winter because of bad weather.

I am assuming your park is in Eastern Washington… as weather has been mild over here in Western Washington. My Dad’s long term RV park is fully occupied in Spokane with a waiting list. Maybe ask some neighbors as to how often the park has been closed past few years. Weather has been pretty mild snow wise in Eastern Washington last few years (have a park just north of Omak). Also… get a good look at the garbage bill. Was looking at an RV park in Wilbur and had to walk away due to the garbage costs… just like owners did.

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