1️⃣ HOTEL – BUY BOX
SIZE
• 60–150 rooms
• Flagged or strong independent
• Built after 1985 preferred
PERFORMANCE TARGET
• 60%–70% current occupancy
• ADR below market by 10%+
• NOI margin under 35% (means upside)
WHY
Low efficiency = opportunity.
MINIMUM DEAL METRICS
• DSCR minimum 1.30 stressed
• Cap rate 7%–9%
• Price per key below area average
• RevPAR below competitive set
If market ADR = $170
Property ADR = $150
That’s your lever.
RED FLAGS
• 50% occupancy or less
• Heavy PIP required
• Franchise termination risk
• Seasonal-only demand
VALUE CREATION CHECK
If you increase:
Occupancy 5%–10%
OR
ADR $10–$20
Does NOI increase 15%+?
If yes → buy.
If not → pass.
2️⃣ RV PARK – BUY BOX
SIZE
• 80–200 pads
• Public utilities preferred
• Near highways, parks, job corridors
PERFORMANCE TARGET
• 85%+ occupancy
• Below-market rents
• Expense ratio under 45%
MINIMUM DEAL METRICS
• Cap rate 6.5%–8%
• Rent at least $75 below local market
• Long-term tenants preferred
• Utility bill-back possible
RED FLAGS
• Septic failures
• Flood zones
• Heavy park-owned homes
• Seasonal-only tourism
VALUE CREATION CHECK
If you raise rent $75
Does NOI increase 10%–15%?
If yes → likely $1M upside.
RV parks are math machines.
3️⃣ MOBILE HOME PARK – BUY BOX
SIZE
• 100–300 lots
• 90%+ occupancy
• Tenant-owned homes preferred
This is key.
PERFORMANCE TARGET
• Expense ratio 30%–40%
• Lot rent below market
• Minimal park-owned inventory
MINIMUM DEAL METRICS
• Cap rate 6%–8%
• Rent $50–$100 below market
• Stable demographic area
RED FLAGS
• 30%+ park-owned homes
• High delinquency
• City utility pressure
• Major infrastructure repairs
VALUE CREATION CHECK
If you raise rent $50
Across 150 lots
150 × $50 = $7,500 per month
$7,500 × 12 = $90,000
At 6% cap:
$90,000 ÷ .06 = $1,500,000 value increase
That’s your $1M.
YOUR UNIVERSAL FILTER (ALL ASSETS)
Is rent below market?
Can NOI increase 15%+ within 12–24 months?
Is cap rate 150–200 basis points above debt cost?
Can I stress test 10% revenue drop and still survive?
Is there refinance equity after stabilization?
If answer is yes to 4 of 5 → pursue.
ORDER OF STABILITY
Mobile Home Park – most stable
RV Park – strong yield
Hotel – highest upside, highest risk
SIMPLE RULE
If you cannot clearly explain:
How NOI increases
How value increases
How lender is protected
Do not buy it.
You don’t look for buildings.
You look for:
Underperforming NOI
Protected downside
Forced appreciation
That’s your filter.
Structure over sacrifice. Stewardship over struggle. Every deal builds legacy.