RV Park Opportunity

[Carson Campbell]

Hi All,

I was approached with an opportunity to purchase an RV park. I currently have one rental and a second property that is my primary residence. I will need to sell the rental to afford the purchase of the RV park but I have a couple of questions before doing so. 

1. The RV Park owner bought the property for 400k in 2020, and is asking 1.2M now. He shared an excel file that shows his breakdown of the financials which look good, but I'm thinking I need to ask for bank statements to prove the consistency of income. Is this possible?

2. If I sell my rental does it qualify for a 1031 tax exchange? Or could I use property as collateral?

3. I learned that another investor is building another RV park adjacent to this one. Would this scare you off?

Thanks for your input!