Rv lots and Franks Dec newsletter

Frank how would you value the income from a long term RV lot when pricing a 50 space park that has 4-5 long term RV’S?
I know this has been diiscussed before but I am wondering if you have decided to add value to occupied rv lots based on the income they produce.

It’s all about the RV in the lot, when it comes to valuing on the buy side (my article was about bringing in RVs after you already own it, and when income is income without consideration of future value of that income stream). If the RV is “hard piped” (utilities run just like a mobile home in conduit, etc.) then you might value them the same as MH lots, if there are only a very few (probably 5% or less). Most banks will go along with that concept. 10% is a pretty big risk, as if you guess wrong and they all pull out tomorrow, you’re NOI numbers are shot and you’re now looking at having to bring in MH at $25,000 or so apiece to fill those lots. I would definitely put some discount in there if it’s 10%.