All Forum Posts by: Alisa Gammon

@Justin Hoggatt thanks for your helpful feedback! Correct, there are not many amenities or activities. 

Good to know about Workamper and where to find them. I'll look more into the sewage restrictions. Thanks for that feedback.

I came across a RV park opportunity, and just wanted to get a few opinions on my thought process here. This would be my first RV park and real estate purchase. 

The Details

- Property is on 20 acres in the country.

- There are currently 22 full hookup lots (water, electric, and sewage) and a duplex stick built house.

- Original RV park was started in 2008. Additional 12 RV hookup spots were added in 2019

- The RV park is made up of a mix of monthly rentals for temporary workers and daily rate customers.

- I credit the 2020 increase in expense rate to a decrease in demand from the temporary workers’ industry. That industry isn’t projected to exceed 2020 levels until 2022. This definitely adds more risk to the opportunity.

- I figure over half of the value in the property is in the land and duplex, but I figured the cap rate based off of overall purchase price.

- The expenses do not include a RV park manager. According to the current owner, he easily runs the park, and his own side business, in addition to working a full time job.

- I would not mind stepping in and helping out from time to time with the management of the park, but I wouldn’t want to be distracted from my high paying main income.

The Numbers

2019:

• Income 63% monthly rentals, 37% daily rentals
• Expense Rate 52%
• Cap rate: 23%

2020:

• Income 35% monthly rentals, 65% daily rentals
• Expense Rate 60%
• Cap rate: 13%

How would you recommend figuring out a budget for an RV park manager? Would this be a full time or part time role? Would it work to offer free lot rent and a stipend as compensation for an RV park manager? Any thoughts or feedback on numbers would be very appreciated!