The $1M Filter: How I Select Hotels, RV Parks, and Mobile Home Parks
Written by Jai Thompson
I manage a private equity platform deploying 13–18 million per quarter across multiple real estate asset classes. Our model is asset-based, escrow-directed, and execution-driven, allowing us to close in 23 days or less with certainty and clean title flow.
We acquire and operate across:
• Luxury estates
• Single-family residential portfolios
• Multifamily communities
• Hospitality and hotels
• Mixed-use properties
• RV parks and mobile home communities
• Golf resorts and destination assets
• Specialized housing and income portfolios
Capital is structured, operators are paid, reserves are built in, and all disbursements are controlled through escrow. We deploy with discipline, transparency, and speed—while tithing back to the communities we serve.
This article is not about chasing deals.
It is about filtering for $1,000,000 upside.
Below is exactly what I look for in Hotels, RV Parks, and Mobile Home Parks.
1️⃣ HOTEL ACQUISITION CRITERIA
The Size
• 60–150 rooms
• Flagged or strong independent
• Built after 1985 preferred
Why this range?
Large enough to scale NOI.
Small enough to reposition.
Performance Targets
• 60%–70% current occupancy
• ADR at least 10% below market
• NOI margin under 35%
Low efficiency creates leverage.
If the market ADR is 170
And the property ADR is 150
That is opportunity.
Minimum Deal Metrics
• Stressed DSCR minimum 1.30
• Cap rate 7%–9%
• Price per key below area average
• RevPAR below competitive set
I am not buying perfection.
I am buying inefficiency.
Value Creation Trigger
If I increase:
• Occupancy 5%–10%
OR
• ADR 10–20
Does NOI increase 15%+?
If yes, the value expands fast.
Hotels move value quickly because revenue resets daily.
Red Flags
• 50% occupancy or lower
• Major PIP without funding
• Franchise risk
• Purely seasonal markets
If downside risk is uncontrollable, I pass.
2️⃣ RV PARK ACQUISITION CRITERIA
RV parks are quiet cash flow machines.
Size
• 80–200 pads
• Public utilities preferred
• Near highways, job corridors, parks
Location stability matters more than luxury.
Performance Targets
• 85%+ occupancy
• Rent below local market
• Expense ratio under 45%
Below-market rent is the lever.
Minimum Deal Metrics
• Cap rate 6.5%–8%
• Rent at least 75 below market
• Long-term tenants preferred
• Utility bill-back possible
If rent can move 75, value moves fast.
Example:
150 pads
Raise rent 75
150 × 75 = 11,250 per month
11,250 × 12 = 135,000 per year
At 7% cap:
135,000 ÷ .07 = 1,928,571 value increase
That is how $1M appears.
Red Flags
• Septic system failures
• Flood exposure
• Heavy park-owned inventory
• Seasonal-only tourism model
RV must be durable income, not vacation-only speculation.
3️⃣ MOBILE HOME PARK ACQUISITION CRITERIA
This is the most stable asset class in this group.
Size
• 100–300 lots
• 90%+ occupancy
• Tenant-owned homes preferred
Tenant-owned homes reduce turnover and risk.
Performance Targets
• Expense ratio 30%–40%
• Lot rent below market
• Minimal park-owned homes
Low expenses + stable tenants = strong refinance play.
Minimum Deal Metrics
• Cap rate 6%–8%
• Rent 50–100 below market
• Stable working-class demographic
These assets reward small rent increases.
Example Value Expansion
150 lots
Increase rent 50
150 × 50 = 7,500 per month
7,500 × 12 = 90,000 per year
At 6% cap:
90,000 ÷ .06 = 1,500,000 value increase
That is your million.
Red Flags
• 30%+ park-owned homes
• High delinquency
• Infrastructure failures
• Utility pressure from city
Stability is the game here.
The Universal $1M Filter
Before I pursue any asset, I ask:
Is rent below market?
Can NOI increase 15%+ in 12–24 months?
Is cap rate 150–200 basis points above debt cost?
Can I survive a 10% revenue drop?
Is refinance equity visible after stabilization?
If 4 out of 5 are yes, I move forward.
If not, I walk.
Stability Ranking
Mobile Home Park – Most stable
RV Park – Strong yield
Hotel – Highest upside, highest operational risk
Each has a place.
Each requires discipline.
The Simple Rule
If I cannot clearly explain:
• How NOI increases
• How value increases
• How the lender is protected
I do not buy the asset.
I am not buying buildings.
I am buying:
Underperforming NOI
Protected downside
Forced appreciation
That is the $1M filter.
Contact Mr. Jai Thompson
📞 Call or Text: 980-353-2408
Structure over sacrifice. Stewardship over struggle. Every deal builds legacy.