Operating Expenses
Gross revenue ร expense ratio + fixed costs
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Net Operating Income (NOI)
Before debt service and taxes
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NOI Per Site
Annual NOI รท total sites
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Cap Rate
NOI รท purchase price
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Cash Flow After Financing
NOI minus annual financing cost
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Estimated Payback Period
Purchase price รท NOI
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Disclaimer: For informational and planning purposes only. Not financial or investment advice. This calculator produces estimates based on inputs you provide and simplified assumptions. It does not account for seasonality, capital expenditure requirements, vacancy reserves, local market conditions, tax implications, or due-diligence findings. Always consult a qualified advisor and review actual historical financials before making investment decisions.
Explore state market data to refine your assumptions
Cap rate (capitalization rate) is the ratio of a property's Net Operating Income (NOI) to its current market value or purchase price, expressed as a percentage. A 10% cap rate means you're paying 10x annual NOI. RV parks typically trade at 8%โ14% cap rates โ higher than traditional multifamily because of perceived management intensity and seasonality, lower than raw land because of existing cash flow.
What occupancy rate should I underwrite for an RV park?
A stabilized, year-round RV park in a strong market typically runs 60%โ80% annualized occupancy. Seasonal parks (coastal, mountain) may hit 85%+ in peak summer but average far lower annually. For conservative underwriting, start at 55%โ65% and stress test at 45%. Always ask the seller for 3 full years of occupancy and revenue data, and verify against utility usage records.
What operating expense ratio should I use?
Most RV parks run 35%โ55% operating expense ratios (total OpEx as a percentage of gross revenue). Well-run parks with minimal amenities and lean staffing can achieve 35%โ40%. Parks with pools, recreation facilities, laundry, and full-time staff often run 50%โ55%. This calculator's default of 45% is a reasonable starting point for a mid-amenity park โ adjust based on the specific property.
How accurate is this calculator?
This calculator is a first-pass estimation tool, not a substitute for a full financial model or market study. It assumes uniform year-round operations, which most parks don't have. Seasonality, capital reserve requirements, property tax specifics, and management overhead can all shift actual returns significantly from these estimates. Use it to screen opportunities quickly โ not to make final acquisition decisions.
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