Considering this opportunity with 13 RV spots, studio apt, and SFH on 3 acres

[Stephen Blair]

The wife and I have been looking at local real estate for another rental to add to our portfolio. We came across a deal by word of mouth only a few miles from us that has not been brought to market yet and it has peaked our interest. Older owners looking to retire and travel. They are looking to sell by owner their property/business. 3 acres zoned commercial with a older studio apartment, a 2 BR 2 Bath owners quarters custom home built in 2020 with a big workshop, and 13 (Long term) monthly RV full hookup parking spots.

The studio apartment rents for $800 month utilities paid.

The RV spots rent this year increased to $400 a month with utilities and occupancy rate is typically 90-100% last several years. Some tenants have lived there for years.

The house and shop could potentially rent for $1800. We would keep our current home since we are so close. Also we would plan to self manage it.

Looking at $93,600 gross annually, with estimated NOI of about half that. Biggest expense being electric on the spots in the hot and cold months of the year. Several value add options we see by driving by, like signage, advertising online, possibly meter the spots for electric reducing and stabilizing that expense. The seller is asking $535,000 and is willing to seller finance with a 10 year balloon. The other terms interest rate etc. have not been discussed yet. Kind of a unique deal here, buying an apartment, single family home and RV park all in one. This doesn't seem like a bad deal to us but wanted to hear your thoughts. Any pointers on valuing a property of this type? We appreciate any input you have to offer.