A $2.8 million RV park deal in North Carolina with 44 sites, 2 glamping tents, and a rental cabin projects $302,000 annual profit. The math assumes 50% occupancy at $60-$80 per night, plus revenue from a store, firewood, tubing, and kayaking. Sensitivity tests show the deal works if occupancy stays above 45%.
it shows here, the feasibility study is to test whether 302 NOI is supported for the $2.8 million, 47-unit RV park in North Carolina. So to defend this, there's a strong existing revenue from the 44 RV sites, glamping tents, rental RV and cabin. This is a lot more like an RV park and less like a mobile home park. So high peak season occupancy, premium nightly rates. Meaningful ancillary income from the store, the firewood, the tubing, the kayaking, pet fees, late checkout, laundry, rental, passive streams of income, right? Meaningful— and I'm sorry, expense discipline looks good. Documented expansion upside. So these are all the points that the feasibility study looks at. North Carolina tourism is strong. We've got outdoor recreation is huge in North Carolina. Camping demand is high. RV industry is stabilized post-pandemic, meaning like we had our peak and then we're backed out and now we're back going back up. This is— excuse me— showing us our competition. We got Asheville, Bear Creek, Wilson's— excuse me— Wilson's Riverfront, Blue Ridge, Old Fort. Like, they're showing us all the prices and all the stuff, so Revenue model to support it has to look like this. Per the listing, we got 44 sites, 2 glamping, 1 RV rental, 1 cabin under rental, and currently have 47 income units. Based on those numbers, we'd have to have 44 sites times 365 times a 50% occupancy because it snows in North Carolina and it's cold. And these are the numbers we have to hit every night. Then this is the numbers we have to be at. So then looking below, the expense assumption down below shows operating expenses to be close to 60%, and that's how we end up at the $303,000. Okay, that $303,000, for it to be true, we need to have at least a— have the 50% occupancy at the numbers that we've seen. So we look at a sensitivity test, which is a sensitivity test. If you don't know what a sensitivity test is, it shows you what your RVADR— the average daily rental— okay, $60 to $80 occupancy, $45 to— or 45% to 60%. And so this will show the revenue scales on that. So that gives us an understanding of how hitting the 302 is possible or not possible, right?
