Top Financial Metrics to Evaluate RV Park Investments in Texas – Expert Insights
Investing in an RV Park in Texas can be a game-changer for your portfolio—but only if you crunch the numbers right. At AngelBG, Juan Carlos Cruz and his team specialize in helping investors like you analyze, acquire, and maximize RV Park deals across Texas.
In this guide, we’ll break down the 7 most critical financial metrics for evaluating RV Park investments—with expert insights from Juan Carlos Cruz, a seasoned real estate investment strategist.
👉 Want a personalized analysis of an RV Park deal?
📞 Contact Juan Carlos Cruz at AngelBG for a free consultation.
Why Texas? Why RV Parks?
Before diving into the numbers, let’s see why Texas RV Parks are a prime investment:
✅ Exploding Demand – Texas is a top RV destination (Hill Country, Big Bend, Gulf Coast).
✅ Tax Advantages – No state income tax = higher investor profits.
✅ Strong Cash Flow – Well-managed parks yield 10-15%+ annual returns.
But not all RV Parks are equal. That’s where financial due diligence comes in.
7 Key Financial Metrics (Used by AngelBG’s Experts)
1. Cap Rate (Capitalization Rate)
What it tells you: “Is this park priced right?”
Juan Carlos Cruz’s Tip: “In Texas, aim for an 8-12% cap rate. Below 6%? Overpriced. Above 14%? High risk.”
📌 Formula: Cap Rate = (Net Operating Income / Purchase Price) × 100
2. Cash-on-Cash Return
What it tells you: “How fast will I recoup my cash investment?”
AngelBG’s Benchmark: “Strong Texas RV Parks deliver 15-25%+ CoC returns with financing.”
📌 Formula: CoC Return = (Annual Pre-Tax Cash Flow / Total Cash Invested) × 100
3. Occupancy Rate Trends
What it tells you: “Is demand stable year-round?”
Critical Insight: “Avoid parks with <60% occupancy. 70-90% is ideal for Texas markets.”
📊 Pro Tip: Ask for 3+ years of occupancy history before buying.
4. Net Operating Income (NOI) Growth
What it tells you: “Can this park increase profits over time?”
AngelBG’s Strategy: “We look for parks where NOI grew 5-10% annually—sign of good management.”
5. Loan Terms & Leverage
What to check:
✔ Loan-to-Value (LTV) ≤75%
✔ Interest Rates (Fixed vs. ARM)
✔ Prepayment Penalties
💡 Expert Financing Tip: “We’ve secured 5-7% interest rates for clients in 2024. Let us negotiate for you.”
6. Hidden Costs (That Kill Profits!)
Juan Carlos’ #1 Due Diligence Checklist:
🔸 Utility Costs (Texas water/sewer rates vary wildly)
🔸 Property Tax Increases (Texas has no income tax but rising property taxes)
🔸 Insurance Premiums (Flood zones = higher costs)
7. Exit Strategy Multiples
AngelBG’s Approach: “We target parks that can sell for 8-12x NOI in 5-7 years—doubling your equity.”
How AngelBG Finds Winning RV Park Deals
Here’s Juan Carlos Cruz’s 3-step process:
1️⃣ Off-Market Sourcing – Access to unlisted Texas RV Parks.
2️⃣ Forensic Financial Review – We audit every line item in park financials.
3️⃣ Value-Add Blueprint – Identify rent hikes, amenity upgrades, cost cuts.
🔥 Hot Opportunity:
AngelBG is currently analyzing a 50-site RV Park near Austin with 12% cap rate potential. Limited slots for investor partners.
📢 Want the full deal details?
📞 Call Juan Carlos Cruz at AngelBG today!
