Investor · San Antonio, TX · Member since 2015 · 82 posts · 15 votes
Hello Everyone,
Can anyone out there give me insight or an example of cash on cash ROI on a RV or Camper rental lot they own? Are the percentages vastly different than a rental home or multifamily home? Thanks
Investor · Fort Lauderdale, FL · Member since 2020 · 1k+ posts · 755 votes
3y
I have been researching this as well but it will depend on your specific market and what people are willing to pay to live in one on your property. You'd have to estimate all the costs of buying the RV and whether you finance it or buy in cash. Let's say you buy in cash and the all in costs (think RV, taxes, delivery, set up, etc) is 20k. Your monthly costs will be close to nothing. Let's say it's just electric, water and occasional maintenance totaling $250 and your rent it out for $1000/mo, your CoC is 300%.
If you finance it, lets say you make payment of $700/mo + your monthly costs are still the $250 as previously mentioned. You still collect $1000 rent so you CoC is 1000/(700+250)-1 = 5.3%