Rv Parks for long term tenants...good investment or no?

Question

My husband and I are fairly new at REI. We own 3 properties in Texas and just recently sold our home in San Jose.  Our plan was to buy a travel trailer park it in an rv park in the area (southbay) but from over 15 parks I've inquired about none have availability. They all have told me they have waiting list of months. I know the outrageous rent increases in the bay area have brought on the demand for rv soaces. So my husband and I just thought why dont we just  buy the land and convert it into our own rv park. Crazy? Maybe. We obviously need to do a lot of research before embarking on something like that. But I would like to know your opinions on how profitable, or not,  would you think something like that would be. We were thinking of at least 2 acres and probably hire managers to run it.  What are your thoughts.

Brian Spohr · Answer

Unless the property is zoned for this use, you likely won't be able to legally accomplish this. I've appraised many MHP/RV parks in the area, and to my knowledge, there hasn't been a MHP/RV park developed in the area in over 30 years. You might want to contact property owners with the land area and work out a lease agreement. Let me know if you need any help with this, I can provide property contacts and market rates.

Matthew Paul · Answer

An RV park for travel trailers , camping . That is a full time business .Nothing Passive about it . Yes , they are booked way in advance . i made all my reservations for this year last month in the Beginning of Feb and some were full for the season .

Now lets talk what you will need , first roads , water ,electric and sewer . Next you will need a store , to sell supplies and to take reservations , swimming pool , bounce pillow , wagon for hay rides , tractors , skid steers for maintenance , bath houses , laundry mat , shuffle board , pavilions for entertainment . You buy golf carts to rent  A full staff for 9 months , maintenance men , store personal  , lifeguards .

Now if you are thinking something like a man camp for guys coming in to work , there could be potential based on your area

Brian Spohr · Answer

Here an available rental option in the area. I’m sure you can find others

https://sfbay.craigslist.org/sby/prk/d/watsonville-park-your-rv-here-space/6831983621.html

Joe Wortham · Answer

Great thread going on in here. I too love the RV park idea. My version of this idea would be a twist between RV park and airBnb style camping.

Background - I stayed at a lodge in Alaska for a fishing trip last year. It was very expensive but the property was very old and run down. We were able to eat and sleep at the lodge. They cabins were poorly insulated and there were no upscale finishings  on anything. My point is even with all these issues, we still had a great time, paid big money to stay and would go back. It was the destination that we came for. The lodging was only to eat, sleep and shower. I been thinking about a good location that has a year round economic engine that draws people to it.

My investment resume is relatively short. I am a licensed real estate agent in the state of California partner with my wife in the South Bay. I am also a career firefighter and I just completed my first BRRR. I haven’t yet gotten to the refinance and repeat but it’s coming.

If you want to chat sometime about the location and brainstorm on what we could possibly do together message me.

I agree there is demand for something like these ideas.

Thanks!

Virginia Cisneros · Answer

This one is out in Watsonville. A bit too far for us. Were looking the farthest Gilroy area and sorroundings of San Jose. I checked craigslist but they want max 2 people and we are 3. Thanks for the tips

Virginia Cisneros · Answer

@JustinK. Yes, the man camp is our idea. There is a lot of development in the area and most rv parks have a long waiting list so I can see the potential. But I believe the 2 years Belinda is talking about is all city inspections , permits and what not. Here in San Jose I've known it takes months for the city just to review your proposal.

Justin K. · Answer

Two years ago we had a tornado come through the area that destroyed a very large local water plant. It resulted in a lot of man power coming in to get this project back on line as fast as humanly possible.

Seeing this as an opportunity, a guy down the road from the facility built a 40 pad RV park in two weeks and was full the day of opening it. Think West Texas man camp style.

I have never talked to the guy so I do not have first hand knowledge but from the people in the town I've heard he paid off ALL of his initial investment into the project, paid off the land in full, and had a nice chunk of money at the end when the project was completed some 5-6 months later.

I do not understand the idea of you have to have 2 years of red tape to cut through before you can break ground.

Rv Parks for long term tenants...good investment or no?

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