Before you look at a single park, calculate your buying power — then shop. Knowing your range keeps you out of parks you can’t close on, and stops you from falling for one you can’t responsibly afford.
Three Forces Set Your Range
Three things decide what you can really pay — and your ceiling is the lowest of them:
- ✔ What your cash can carry
- ✔ What the park’s income will support (DSCR)
- ✔ What the park is actually worth (cap rate)
The formula below is the fastest way to find your starting number — then you pressure-test it against the other two.
The Formula
Step 1 — Start with the cash you have to put in. Example: $400,000.
Step 2 — Multiply by 3.5. $400,000 × 3.5 = a $1,400,000 price point. That multiplier accounts for your down payment, closing costs, reserves, and first-year working capital.
Step 3 — Check the DSCR on parks in that range. Your consultant will run this with you.
Quick Reference
- $300K–$400K in cash → $1M–$1.4M park range
- $600K–$800K → $2M–$3M range
- $1M+ → $3M–$5M+ range
Instead of browsing every park for sale, you focus only on the ones you can actually buy. This simplifies everything.
Sanity-check the value. Campgrounds typically sell around an 8–10% cap rate (value = NOI ÷ cap rate). If an asking price implies a much lower cap rate, you’re likely being asked to overpay.
A note on the math: The ×3.5 multiplier assumes some seller financing or a leaner reserve position. If you’re holding the full 35–45% in cash (Lesson 5), plan closer to ×2.5–3. The DSCR check in Step 3 confirms the number on any specific park.
“Your price range isn’t only about your cash — it’s about the seller, too. A seller willing to carry back part of the price can stretch what you can afford and change the whole trajectory of your future. That’s why this business runs on relationships. When a seller believes in your vision — and sees you carrying their dream forward — they’ll structure a deal no bank ever would.”
Lesson Takeaway
Your price range isn’t set by what you want or what a seller is asking — it’s set by what your cash can carry, what the income will support, and what the park is worth. The lowest of the three wins. Know that number before you shop, and the right seller relationship can help you stretch it the smart way.
“The best buyers know their number before they fall in love with a park.”
