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Hello! I am beginning the process of looking to a park to purchase and would like to hear from anyone in the industry.
I have a fair idea of what I'll be getting myself into as far as workload, dealing with people and maintaining a property, but any insight, quirks of the industry I may not have considered etc would be much appreciated.
My background is in building maintenance (school campus), I have my 2 year degree in automotive technology and a good amount of retail, reception, and customer service experience from when I was younger. I am pretty good at electrical and plumbing and own more tools than are necessary for most jobs. i am also smart enough to know when it's time to put the tools down and call a contractor. I am not getting electrocuted or dealing with a sewage spill just to save money, but am confident in my abilities to maintain such systems.
This is a lifestyle choice, I'm not looking at this as an investment opportunity or a way to make quick, or even good money.
Ideally I'd like something small, that I can manage with just one or two employees, with a cabin/house for me to live in. I'm looking at spending 500k or less, as my down payment would be sufficient to keep my mortgage reasonable to account for any downturn in travel and the learning curve that might effect me as a beginner in the business.
My initial searches and discussions with my broker look hopeful, of course no diligence has been done as I'm just in the beginning stage of looking.
Here's an idea of what I'm looking for: I found a park that just sold along the Ca/Or border for 375k, it had 30 RV spots with hookups, was really close to a popular fishing area, 3 bedroom owners house and a double wide that served as an office/bait shop and maintenance shop. Assuming it turns a profit, it is very similar to what I will be looking for. The state/geographic area isn't as important to me as the location in terms of highways and nearby activities, although there are some areas I'd rather live in than others.
So, what say you? Has anyone done it? How much trouble am I looking at getting into? Anything is appreciated.
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
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I looked long and hard at doing similar.
in the end, I didn't desire the FT commitment of daily renters and high vacancy potential off season. (not enough cash flows off season + hectic / demanding during high season.)
Best to do in a very moderate climate (non-freezing)
Friends have done it for 20+ yrs on Olympic peninsula in WA, they have good year round occupancy, are very close to state and national parks and Canada, so have 50%+ clients who stay 1+ month. They in a very cute and popular city, and are always full (advantages).
I looked at Year-round parks in TX and TN, but they did not average 50% occupancy.
I decided to go more into FT investment rentals (rural residential at the moment, but I prefer NNN commercial. (no bedrooms))
My target is 1% monthly rents on capital expenditure. That gets me a 10% return when expenses are under control.
Interesting, I'm actually looking at a park on the Olympic peninsula at the moment..are your friends selling, haha.
Thanks for the input. It's seems that it's all about due diligence, and finding a park that the owners are retiring. I've been looking in Alaska a bit too, but, like with all the seasonal parks, it has to make enough during the season to keep the payments going through the off season.
I have a lot of work to do, and a bit of traveling. I'd like to see as many parks as I can to try to get some idea of what works for a successful business.
It seems to be the most successful RV parks have full hook ups and a lot of amenities (pool, mini golf, ETC) However they are costly to stay at and even costlier to buy. Some I think are almost impossible to sell as the selling price is enormous and a potential buyer has to look at how long it would take get out of the red and into profit.
Personally, I don't need all the amenities and prefer lower cost camping. An example, we paid $150 for labor day weekend at a private campground with all the bells and whistles. We could have stayed at the state park for $60. Granted the $150 place is beautiful but not really worth $110 more.
Seems like campground prices are really on the rise.
One of my neighbors owned a few RV parks. One thing I did learn form him is an RV park/campgrounds are diverse as lodging. It can be a no frills cheapo hostel all the way to a 5 star luxury resort with everything in between. Additionally, you can cater to a short stay transient passing through crowd or a park that behemoth in a summer spot for the winter. His most successful and financially stable were the simple short stay rest stop type location along the tourist routes where no other facility was available. The one that made the most money (rolling in the money) was the luxury restricted resort one although that placed drained his soul. So I guess you have to decide if you want the Holiday Inn or the Regency Resort & Spa.
Thanks everyone. I have had a few, long phone conversations with brokers in the past week and I'm starting to get an idea of what's out there, what to expect and how to go about this whole thing.
LAKE OZARK, Mo. — Gary Sweet, accused of murdering two people at Riverview RV Park, had been kicked out of the park only weeks prior. Authorities say he returned and murdered the husband and wife who managed the park, just after midnight on Wednesday.
The fatal shooting of Jim and Sheri Parker happened around or just after midnight on Wednesday, Nov. 8, police say. The couple was found in their bed, dead of gunshot wounds, after police responded to the report of a shooting.
Police had been called to Riverview RV Park after a husband and wife reported Gary Sweet fired a gun at their RV. The 16-gauge shotgun pellets or shrapnel injured the husband, but the wife was unharmed. From there, an investigation revealed a door to the park office had been forcibly opened. Police, with the help of the Mid-Missouri Major Crimes Task Force then found the Parkers deceased, in bed.
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