Does anyone have any experience developing or buying RV parks? I live in the Houston area and work in the petrochemical industry doing industrial construction. In my line of work most people own campers and travel from job to job. But in my area specifically there are LOTS of plants and refineries. Most of the parks in the area stay fully occupied as well. So I’m wondering how do you go about developing an RV Park and what it might cost. Average lot rents seem to be around 500 a month after they pay the utilities.
Hey @Jesse Littrell ! I'm learning about this very subject right now and it's pretty interesting. I'd say you are in a unique spot right now getting to observe a market with outsized demand for spots and higher earning inhabitants than usual. If you can partner with a local developer and pull off a new park based on solid numbers, I think you'll be cruising in bliss for the next few decades!
Good luck on the journey!
I have a client that I worked with and instead of developing Mobile Home Parks, he started buying owner financed properties. The owner will finance 50% and then I found A lender that would finance the balance.This might work for you and you can see where you can improve your NOI
@Jesse Littrell Yes, I have purchased existing parks. I toured one on the easy side of Houston today.
@Jesse Littrell *east* side of Houston
@Austin Neal I sent you a message. I would like to talk more on this topic if you have the time.
@Jesse Littrell We developed one by accident. We began developing a mobile home community and when Katrina hit we allowed RVs. Best thing we could've done. RVs require no maintenance and they move out when a storm heads in. Most of ours are long-term, permanent. Single and/or retired mainly. We have loved it but are now selling because partners want out, retiring.
@John Wallace thanks for your reply. I sent you a message regarding the process of your development.
When I lived in Florida, I looked into developing an RV park. There was serious resistance. The primary objection was that Florida (like Texas) is prone to hurricanes and RV's are not secure in a storm. The secondary objection was the perception that RV parks attract a lower class of tenant, so there was a lot of resistance from the surrounding community. I tried to explain that I wanted to develop a nice RV park for snowbirds who at the time were paying $50 per day but it fell on deaf ears. I would recommend that you speak to planning and zoning in your area and get a feel for what the prevailing attitude is towards RV parks.