Hi, former RV park underwriter here. There are a couple of items you need to consider when reviewing RV sites.
Length of Stay
You need to consider how long RV renters stay when factoring in stability of revenue. I would split RV income into Annual (6 months and greater occupancy by one tenant), seasonal (1 month to 3 month) and transient (< 30 days). You mention that she doesn't rent to short term tenants, so that's a strong start.
Of the long term tenants, do any have built on structures, nice landscaping or anything keeping them there? This may not apply if it's a cold weather state. Biggest takeaway is that the more like a standard mobile home tenant an RVer is, the closer the value of their cash flow is to an MH
Typically in an all "annual" park, id value the NOI something like 100 to 200 basis points higher in a cap rate basis than a comparable MH, but there are a lot of factors.
If the occupancy of those sites is quite low and volatile year over year and month over month, I might only value the cash flow at one or two times. Just my thoughts.
A couple of other considerations:
- What is amperage of pedestals? 30 or 50 amp
- Management: management of RV sites, if they're shorter term can be more time consuming. Something to keep in mind.
Let me know if you have other questions