RV Park Analysis / Thoughts?

[Donald F.]

I've been looking for deals for my first commercial property and I’m speaking to the owner of an RV Park that is considering selling. 

It's in a tertiary area, has 48 pads on 5 acres, amenities include cable/wifi, and full hook up access. There's a clubhouse, laundry, kayak rentals, bathrooms/showers, some recent renovations (new plumbing, electric, landscaping, etc.). It's managed by tenants who live on site.

The ask is a little over $1mm and the cap rate is 13%. The owner is looking for $500k down and offering 4.5% interest only financing with a 5 year balloon. The after debt service cash flow gives you a 22% cash on cash return in the first year. 

 I’m thinking I should do a deeper dive as it looks good, what else should I look for? Thoughts?