RV Park analysis and insights

[Rawn Wilson]

Been looking at large multi family deals close to me and closing on my first commercial project shortly. I’ve run across an RV Park recently that caught my eye. Evaluating using SFR model, it looks great on the surface. It’s a 36 unit, 27 park owned and 9 spaces, large office with residential space, pool, and built pad for laundry in future. Last rent roll for 2017 was $161450 actual and expenses were $50,700 actual. All are metered for water and electricity on city services. Located outside of nice midsized town with a college located in it. Asking 1.5M. Paperwork looks mom and pop run, and I’m sure things are missing. Further evaluation would need info from more years, but surface evaluation looks good. Owners have a family situation and want to sell to move on. The formula I found for evaluation was amount of spaces x rent x 70. Just using 27 owned properties and avg 550 rent, that is 1M. I’m thinking I should do a deeper dive as it looks good. Thoughts?