STR RV Lots?

Question

STR RV Lots?

Answer

My wife and I are avid RV'ers and we have looked into this pretty heavily. There are places that sell lots, and allow you to put them into their rental pool. You basically need to pay for power, and their hoa dues. They do take 20-40% of the income as their split most of them. We have run the numbers on those and realized that it will be about break even with the HOA dues where they are at. Sure we would be able to use it, but then we are locked into one location. We had that opportunity to buy a lot in Hilton Head Motorcoach resort for about 150k, that lot just resold for 250k about 3 years later now. There is a place in North GA called river vista that people buy lots too, but they seem to turn over about yearly. Ultimately after we looked at the numbers, we realized we could get better return on investment elsewhere. Some of these lots are not up around the price of a condo in the area and it really makes you question why.......

Answer

We have a couple of RV slots in north central texas that we are thinking of repurposing from long term to short term. STR rules are going to vary from state to state, county to county and finally if it is in a city limit, there may be additional rules imposed in local jurisdictions or by HOAs, if the location happens to be in an area where an HOA has authority. I can't speak for your locale, but in Texas, one of the main issues is making sure you are paying hotel taxes (state level + county level + city (if within a city limit)). Registration or other permit requirements, if they exist, are normally specific to each local & no broad brush requirement can be applied other than hotel taxes. Lastly, regarding entry requirements, you'll probably need some base level of amenities to drive traffic to your STRs (i.e. game areas, hot tubs, fire pits, etc...) Let us know how your journey goes, really exciting..Lane

Answer

I mean you can ask anything you want for a property doesn't really mean anything. Some of the spots in there have significant stone work, and outdoor kitchens, so i get the higher prices on some of those. The hilton head one in particular is even more questionable to me as honestly I'm not heading to the coast of the carolinas in Jan/Feb. I'm heading to Florida so the key months i want to get out of the mountains here of GA and get some warmer weather I can't at Hilton head. I'm still headed south for that. The HOA dues are very high too considering again its a lot, just a small patch of ground with a stamped concrete pad. I guess you might be right that some people see it as a pride of purchase thing (another way of saying status symbol) but really it's just hard to see the value in it when all things are considered and i say that as an avid RV'er my wife and i both work remotely.

Answer

Good Morning Mike,Did you see the RV lot in Motorcoach Resort that is now asking $305k? - Currently active on the market - Lot #70.Regarding using them as a STR, you can utilize it to help cover expenses of ownership, but as you said your efforts may be better spent finding a STR villa or home. Of course this is also all dependent on how much money you would be putting down - if it was an all cash purchase it is redundant of me to say but it would cash flow - but with 20% down and 80% financed as an example - you would need high occupancy to cover your expenses. It becomes much more a "lifestyle" and "pride of ownership" buy at the above listing price for the right buyer where STRs are more of just a "perk" of their purchase. Regarding the question of "why" they are similar to prices of a condo - a simple answer is supply and demand. Granted there are more factors at play but distilled down you can't increase the land supply on Hilton Head as we are an island, and the demand for location on the island remains extremely competitive. You are just as much buying the location and Hilton Head as you are the physical property whether it is RV lot, villa, or a home. There are strong investments close to this price line in the Hilton Head market with strong rental returns such as condos and villas where you can have higher rental rates. As an investor I would recommend taking a look into these if we are strictly speaking from a number perspective.Hope that helps!Sincerely,Ryan Bunting

Answer

This would be a great idea for those that can't/don't want to haul or own an RV. Unfortunately, it's hard to find a park that'll allow you to rent a spot for a STR RV, but you may find somewhere you can do that.