I’m looking at a long-term RV park. 40 spaces, currently 30 are filled. 27 @ 400 lot rent, 3 @ 650. All RVs are tennant owned.
City sewer/water in a common area. Tennants pay eletric. Avg 1Bdr rent for the area is 800 mo and the park is located in a metro area with lots of service jobs in walking distance.
Asking is roughly 1 mill.
NOI is 122k and all of the tennants have been there a while.
The park is a real dump so I’m toying with strategies . A friend in the biz cleans parks up like this by yanking out all of the junk trailers (RVs) and paying 5-6k for mediocre ones and increasing the tennant quality over time. There are 10 spaces to expand into and it has been poorly managed over the years. I’m fairly certain I could fill it.
It’s an extended stay RV park. People are using mixed models around here. Some are converting the MHPs into extended stay RV with success so this looks fairly similar to the MHPs. In this particular area, all of the MHPs have been purchased by developers and turned into Condos or business parks over the last decade.
If developers are buying up the parks then this park is not worth purchasing unless you intend to redevelop it. They are worth more for the land than the business, therefore as a park it is a poor investment.