It has a lot going for it from a long-term rental/cash on cash return perspective, but I’m not too sure about short term rental demand and occupancy.

Investors in these type deals look for say 12 - 14% annualized return.  

That is a dollar for dollar return on principal paydown.

Furthermore, it aligns with the growing trend of home improvements that enhance daily living while maximizing investment returns.

From there, you can better estimate the end numbers and work back to figure out the GP/LP  equity needed and the estimated returns.

I would compare my return with any market, anywhere but 1) this is a different San Diego market than the one I have been so successful in 2) while I am a big fan of leverage, I am not a fan of over leverage.

Although I find competition for what I call investment grade parks is quite keen.. so returns are more in the MF space.. when you venture out east from the west coast or look at low end parks returns are higher but management is quite intense.. as our dealing with some pretty scruffy tenant base.

You’re going to make the deal based on today’s interest rates and today’s returns.

They should be able to determine the COC, annualized return, estimated ARV of a BRRRR, accurate rent comps and more.

Approx 30% return