Good afternoon ladies and gents. I’m very new into the real estate world. I am considering buying a piece of land in the poconos where there are a lot of attractions and buying a couple Rv/ trailers to put on it and rent them out via air bnb. Camping is very popular in the poconos. I was wondering if this is a good idea and could make good profits as a first time buyer? Appreciate any feedback.
Investor · NEPA /NJ · Member since 2019 · 44 posts · 15 votes
5y
@Troy Judge, I would invest some time to run a proper due diligence. Few things to consider:
1. Regulations: some townships are starting to regulate STRs and they have very high requirements for the locations. Not sure if the area you are planning to purchase the land will require it and if yes, not clear if the trailers would pass the requirements.
2. Financials: make sure you know the numbers. Have a look if trailers are booked and what typical ADRs are. Run different NOI and ROI scenarios to understand your best and worst cases scenarios.
3. Risks: you might want to investigate risk factors as safety, theft, infra structure of the land etc.
In overall, as first STR investment I would stick to a single family home located in a secure and established neighborhood.