Posted by ray@lcorn on August 18, 2003 at 13:29:13:
RV parks come in all manner of complexity. Some are semi-permanent residence parks, and on the other end of the spectrum are the franchised, high-volume operations. In between are a mixture of the two. Other hybrids are those that include RV operations combined with a regular MHP, self-storage, laundromats and small retail strips.
All are more a business than a real estate investment, and have to managed on a daily basis. So while the valuation methodology is similar to other income properties (i.e. capitalization of an income stream, real estate and improvement value , and comparable sales), the applicable return rate to the owner is generally higher due to the increased risk and effort of producing the cash flow.
Unless you put systems and personnel in place to handle the day to day operations, its easy to wind up owning a job instead of an investment.