RV Park Analysis: Good or bad deal?

[Brady Pratt]

I'm a relatively new investor and want to run a deal by some more experienced investors to get some insight. I would really love to talk to somebody with experience in the RV Park/Mobile home park space because I have none! We are set to close in May, so I'm trying to learn all I can between now and then. Here are the details:

- 36 RV pads with 30/50 AMP Electric Hookups; water/sewer (there are 42 hookups total, but the other 6 aren't being used as of now)

- the park is averaging 80-85% occupancy with very little marketing; rates are $40/night, $150/week, $400/month

- 16 Acres total 

- main office (approximately 1800 sqft building that could be set up as a convenient store; also has wifi and public bathrooms for campers)

- Here's the fun part... a skeet shooting range

Price: $425,000

Gross Income: $138,240 

NOI: $78,110 (this is without a manager)

So anyway, here are my concerns! First, the gun range is producing virtually none of the profit (<5%) as of now and seems like a major liability. Between the increased insurance premiums and the cost of hiring a manager for the range, I can't seem to justify keeping it. Am I missing something here? Maybe the range could be made profitable through gun rentals, ammunition sales, etc. 

As far as the RV park goes, my only concern is management. I really don't want another full time job with the park, so I'm looking into hiring a property manager. Most of the campers now are temporary workers from out of state. At least half of the them have been there over 3 months. 

I have a local bank willing to finance the deal on a 10 year note with 15% down (rate is going to be somewhere close to 5%). I was really hoping for a 20 year amortization, but it looks like it will still work with 10.

With all that said, what recommendations do you have? What things should I consider before moving forward? Any ideas to increase revenue? Since there is plenty of land left to work with, I've thought about self storage, more RV hookups, or even some small rental cabins. Any advice is greatly appreciated!

Thanks, 

Brady Pratt