Information on RV park investing

6 Replies | Houston, Texas

Hello All, My friend and I are considering purchasing 10 acres in the Houston area outskirts. The plan is to make it a RV park. His property is next door and owns  25 acres. Does any one here have any  information or advise on  developing a RV park.  Zoning? electricity? water ? insurance , Taxes ?  So on...We want to make sure before closing this deal that we  recognize all the red flags. I am a landlord myself but no experience on RV parks.

Victor;

What an exciting opportunity!    My wife was involved with managing marinas and RV parks when we were first married and living in San Diego, CA.  

The first question you need to answer is: are these 10 acres situated within the limits of a city that has a zoning ordinance like the City of Tomball?  Everything else hangs on that question...

Hi Victor, Have you bid out construction costs yet? I'm looking into new park development outside of Austin TX and am interested in hearing how your progress is going (I'm originally from the Spring/Tomball area). Good luck on your work!

Thanks,

Tony Koinis

Zoning is everything.... Check to see if they will require environmental studies, septic ratios, required taps, elec requirements, driving/paving requirements +

It is a long process to get all of your ducks in a row. I would guess you will need to maybe 15-25k for all the upfront stuff before you get a license to break ground if not more depending on what you find.

A worthwhile venture if you can own some of the units you rent out and collect double rents per pad. My opinion.

I just stopped on my way home tonight and spoke with a husband and wife team that just finished building a really nice RV park in Porter. A couple of things stood out.

First, they said the planning and preliminaries took about two years from the time they pulled the trigger on the project. Apparently the water well was the holdup and not, as they feared (and me, too), the septic design. Apparently because you're providing water to multiple units, you're a utility provider, and it's not like just getting a well permit for your own use. They said it took something like seven months to get the well approved, and then several more months after that to have the water quality testing done.

Second, they are still fighting with Montgomery County over their use of park-model RV units. They originally designed and built the entire complex with the intent of putting park model units in every space. These units are classified as RV's by the RVIA and ANSI and whoever else certifies those kinds of things, but the county ain't having it. They are refusing to renew the septic permit until the owners remove the "tiny houses" from the property. The owners keep pointing out that they have no tiny houses, that in fact all they have are RV's, but the county is being stubborn. They were both clearly exasperated and stressed out by the situation.

They said it's been a learning experience, but they confirmed they're making a profit on the place. I didn't ask for specifics and they didn't volunteer.

Hi @Andrew Taylor ,

That timeline on an TCEQ well sounds right on target. The added cost and time is a little ridiculous given that all of those who are staying in the park could drop a simple residential well on their own property and not be subject to those restrictions and controls... 

On the "tiny home" issue, do you know if they were attempting to rent them out on a monthly+ basis or were they 100% doing nightly business?? (I'm assuming that they were trying to do Monthly rentals given the number they put on the property...)