How to value a RV Park

[Pete Harper]

I’m looking for feedback on an off market RV Park deal. My primary investment strategy is long term buy and hold for cash flow. I’m semi retired and the property is close by so self management is an option.

Asking price $275,000

Gross annual income $70,000

Annual Expenses $32,000

Adding in closing costs all in $280,000

Cash on cash 13%

Cap rate 25%

Property owns nine units. Average rent $500; lot rent is $300. Eyeballing it looks about 50% occupied.

Can you get commercial financing on an RV Park.?

Is this a good deal?