Investing in an RV park might sound like an exciting venture, but do you know what to look for before signing the dotted line? Whether you're a seasoned real estate investor or just exploring RV parks for the first time, understanding the key elements determining a good park from a great one can save you time, money, and stress.
If you’d rather watch a video walkthrough of this property and see everything we discuss firsthand, click here to watch the YouTube video.
The Key Factors to Look for When Buying an RV Park
When purchasing an RV park, there are several things to keep in mind to ensure you’re making a sound investment. Let’s break it down into manageable sections.
Evaluating the Park’s Infrastructure: Gravel vs. Concrete
One of the first things you should evaluate is the quality of the park’s infrastructure. Is the park made up of gravel roads, or does it have concrete or asphalt? Concrete is often preferred for durability and lower maintenance, but gravel can work depending on the park's needs and future development plans. This Pensacola park, for instance, has gravel roads, which is acceptable, but upgrading to asphalt or concrete may be a consideration down the line.
Quality of RVs and Trailers on the Property
Another key factor to observe is the type of RVs and trailers currently in the park. High-quality RVs often reflect a higher standard of living for the residents, which is always a positive sign. In this case, we saw well-maintained campers, a good indication that the park attracts respectable long-term tenants.
Monthly vs. Transient Parks: Know the Difference
Is the park catering to long-term monthly residents, or is it more of a transient, nightly rental setup? Understanding this is critical because monthly parks like the one we toured often offer a more stable income stream. Many tenants, including contractors, teachers, and even first responders, live and work in the area, making it a reliable revenue source.
Amenities: Walking Trails, Ponds, and More
When looking at parks, amenities are a major selling point. This particular park features a catch-and-release pond, walking trails, and even kayak rentals. These little extras can make the park more appealing to tenants, allowing for higher rental rates and occupancy levels. If you’re considering a purchase, take a good look at what the park offers and how you can potentially improve or add more amenities.
Expansion Opportunities: Are There More Sites to Develop?
One of the most exciting aspects of this Pensacola park is that it’s already approved for 33 more RV sites. Expansion potential is key for investors looking for ways to increase revenue. Always check if the park has additional land that can be developed or if there are any legal hurdles to expanding.
City Sewer vs. Septic: The Difference Matters
If the park has city sewer and water, like this one, that’s a major bonus. Installing and maintaining septic systems can be costly and time-consuming. For investors, city utilities typically reduce the complexity of management and lower long-term costs.
Final Thoughts: Is This RV Park a Good Investment?
In conclusion, when evaluating an RV park for purchase, focus on infrastructure, the quality of the RVs, whether it’s a monthly or transient park, available amenities, and the potential for expansion. Each of these factors will help you assess whether the investment is right for you