Need opinions on if this is a good deal!

Eugene, Oregon
Buying & Selling Real Estate
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Need opinions on if this is a good deal!

Matt Gray
Member since 2025 · 1 post · 1 vote

Seeking Input on a Multi-Family/RV Park Real Estate Deal

Hi everyone! This is my first post here, and I’m looking for feedback from experienced investors on a real estate deal I’m considering. I’m under contract but haven’t processed funds or fully committed yet. Below are the details of the deal, my planned approach, and my concerns. Any advice or insights would be greatly appreciated!

Property Details

Purchase Price & Financing: $500,000 owner carry, 10-year term, 5% interest rate, balloon payment at the end.

Zoning: Multi-family, mixed-use, RV parks.

Current Condition:

3 single-family homes (2 with tenants paying $600/month each, 1 with a squatter).

7 manufactured homes (all condemned or in severe disrepair).

3 cottages (in poor condition).

Monthly Expenses:

Mortgage: ~$3,000/month.

Sewer: $1,300/month ($100 flat rate per connection, 13 connections).

Taxes & Insurance: ~$700/month.

Total: ~$5,000/month in carrying costs until properties are fixed and generating income.

Proposed Plan

My strategy is to renovate and reposition the property over the next 2 years to maximize cash flow. Here’s the breakdown:

Demolish 7 Manufactured Homes & Convert to RV Sites:

Cost: ~$60,000 for demolition and RV site preparation.

Expected Income: 7 sites at $700/month each = $4,900/month.

Address Squatter & Renovate Third Home:

Cost: ~$30,000 for squatter removal and renovations.

Expected Income: Rent at market rate of ~$1,500/month.

Renovate 3 Cottages:

Cost: ~$50,000 per cottage ($150,000 total).

Expected Income: 3 cottages at $1,500/month each = $4,500/month.

Renovate 2 Occupied Homes:

Cost: ~$25,000 per home ($50,000 total).

Expected Income: Increase rents to market rate of ~$1,800/month each = $3,600/month.

Financial Projections

Total Investment:

Mortgage: $500,000.

Renovations & Development: $290,000 ($60K RV sites + $30K third home + $150K cottages + $50K homes).

20% Contingency for Overages: $158,000.

Total Estimated Cost: ~$948,000.

Projected Monthly Income:

RV Sites: $4,900.

Third Home: $1,500.

Cottages: $4,500.

Renovated Homes: $3,600.

Total Gross Income: ~$14,500/month.

Projected Net Income: $9500/month after expenses ($5,000/month carrying costs).

Timeline: Approximately 2 years to complete renovations and stabilize income.

My Concerns

I’m hesitant to pull the trigger on this deal due to the high upfront costs, the complexity of managing renovations

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  • Ricardo R.Pro Member
    Property Manager · Michigan Ctr, MI · Member since 2016 · 661 posts · 581 votes
    1y

    Hey Matt,

    That’s quite a first deal to jump into — definitely ambitious. Props to you for laying it all out so clearly. A couple thoughts from looking at your numbers and plan:

    1. Carrying costs are your biggest risk.
    You’re looking at ~$5k/month out of pocket until things are stabilized. On paper, your end numbers look solid, but 24 months of heavy carrying while juggling demo, RV site prep, squatter removal, and major renos is a lot of cash burn. If anything slips (permits, contractors, financing, material delays), your contingency gets eaten up quick.

    2. RV conversion is not “plug and play.”
    Make sure you’ve double-checked zoning, utility hookups (water, sewer, electric for each pad), and demand. $700/site sounds reasonable if it’s a high-demand area, but if there are already parks nearby or seasonality hits harder than expected, that income stream could lag. Banks also don’t always love RV park income, so keep future refi options in mind.

    3. Renovation scope is heavy.
    You’ve basically got every type of project rolled into one deal: demo, site development, single-family rehab, multi-unit rehab. That’s a lot to coordinate as a first big swing. If you don’t already have a trusted GC or project manager, you’ll be wearing too many hats.

    4. Exit strategy matters.
    The balloon payment in 10 years is fine if the property is stabilized and cash flowing strong, but will you be able to refinance into long-term debt? Make sure the numbers still pencil out at higher interest rates than today.

    5. Gut check.
    You’re talking about a near-million-dollar total play with contingencies built in. That’s not small potatoes. Ask yourself: if this runs 20–30% over budget (which is common on heavy rehabs), can you stomach the extra time and capital? If the answer is “yes” and you’ve got strong local demand for RV + affordable housing, it could be a huge win. If “no,” it might be smarter to scale down into a cleaner first deal.

    Overall, I’d say the deal has potential but is high-risk/high-reward. Nothing wrong with swinging for the fences, just make sure you’ve got the reserves, the team, and the stomach for a 2-year grind before cash flow hits; I tried to organize it and layout as best as I could and I really hope this helps you out, I sent you DM on BP and hope you can assist. 

    [email protected]810-844-1104
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