Hi,Looking into a park which has 100 Mobile home lots and 30 RV spaces. We are comfortable evaluating the Mobile homes. We are trying to find how much value we should put for the RVs here. Any help would be appreciated. Here is what we know:1. Currently there are 10 RVs2. RV rent is $200/month3. The owner pays for water, sewer and trash4. In the peak there are 13 RVs and the low point 4 RVs and this variability is on a monthly basis.None of the RVs are fixed, so the RVs can drive off at any time to another park. How would we evaluate the RV income and put a price point to these RVs which so much variability?Thank you.
If you are saying that the RVs drop to 4 (out of 30 RV pads) then there is really not much value there. I might look at the historical RV NOI (RVs typically have high expenses against the lot rent since water, sewer, trash, and electric are all included), and value that at a 20% - 25% cap rate.Empty lots have no value.You might consider placing mobile homes on those RV lots; you may need to combine 2 RV lots to make room for one MH.If you and the seller can not agree on the value of the RV lots, you might also parcel-them off and let the seller keep them and just buy the more valuable MH lots.Good luck, and let us know how it turns out,-Jefferson-