RV Park Strategy (Hybrid or Standard)
Hey all!
I am contingent on a great mixed use RV park with a duplex, two cottages and 18 RV spaces. Everything is currently vacant for rehab. Seller financed deal with a 5 year term with balloon at the end.
Here is my big picture question for the strategy of the park. The exit strategy is to stabilize the park and ultimately refinance after 5 years and increase value as much as possible.
Here are two strategies I am thinking:
Hybrid: Rent out all structures to long term tenants, rent 7 RV spaces to long term tenants. The 10 other spaces I would like to rent out to 'transient' RV'ers. This model has the most income producing potential. Equaling higher NOI which would mean a higher overall property value. Property is located in an area where short term Rv'ers want to be.
Standard: Rent out all structures and RV spaces to long term tenants. Less total possible income but more consistent.
Plan is to have one space dedicated to a park manager to manage the property and potentially RV'ers in the short term spaces. I know the Hybrid model will be a little more work, which is fine. I just want to know if anyone has done this or seen success with this hybrid model before or if I should just go all long term?
Again, I want to have the highest NOI possible for value add and to increase the value of the property for the refinance.
Thanks!