RV Park ~ City Services, Permanent Guests = Cash Cow?
Hi, I've never built/owned/operated an RV Park before, but I've done lots of research, have paid hundreds of dollars to the city for a 1 hour discussion on requirements, etc. Sounds very doable, city is on board. I would be buying a 4 acre commercial piece for ~$100 in the southwest part of Oregon, extending the city services a few hundred fee up the state hwy at a cost of about $70K and starting with ~20 or so full hookup, gravel-finished pads with room for up to ~50 sites down the road. This is a depressed area but in a big way it has recently become a boomtown from the marijuana growing industry (kind of a perfect storm), and many folks are buying RVs and trying to find somewhere to park them permanently paying monthly rent. City says this is no problem to them. I figure I can buy the land and get 18-20 sites going for around $300K. This piece fully developed with 50 or so sites would have a $15K-$20K monthly gross potential. This revenue may seem small to some of you high rollers but this would be huge, life-changing in a good way, for me and my family.
I had previously been pursuing a 2 acre piece in the county where I would have had to install my own septic and well. At some point I decided against that and that wherever I do a park I will make 100% sure to be on City water and sewer.
I have a friend in the same area who has a 40 space RV Park, nothing fancy, gravel pads, but he's FULL of permanent renters and turning people away! He says it's the best thing he's ever done and should have done it much sooner in his life. He travels the world now and laughs all the way to the bank. While I've decided to go with city services, this guy refuses to touch the city due to their fees. I told him that to me having the city services is worth every penny of their fees so I never have to worry about a septic or well going bad.
Separate from the 4 acre project I describe above, I also have the opportunity to buy a 1 acre commercial piece in the city with city services already at the curb, asking price is $123K. I figure with city services this thing would just kind of run itself and be a cash cow. Am I delusional or can 1 acre, city lots with permanent renters really be cash cows? I figure if there are permanent renters, they're all on city services, there's not much to go wrong?? Correct? Or??
Thanks for any advice!