Even if a park has a strong NOI, you must calculate:
Can this park pay for itself with today’s loan terms?
Key points:
- Most banks want a 1.25 DSCR
- SBA loans have strict cash-flow requirements
- Seller financing is flexible — but not guaranteed
- Your personal income matters
- You need working capital
Example:
Park NOI: $150,000
Loan payment: $120,000
Remaining cash: $30,000 → not enough.
Buyers MUST know this:
If a park cannot cover its debt with buffer, it is not bankable.
