Posted by Mrs. M on September 05, 2003 at 01:56:22:
Thanks for all of your comments. All great points. In the multitude of counsellors there is safety :o)
We are going to pass and keep learning.
Thanks again.
Mrs. M
RV Park question - Posted by Mrs. M
Posted by Mrs. M on September 04, 2003 at 24:49:23:
My husband and I are looking into a small RV park for sale. It has 15 spaces which rent for $195 per month. It’s not the type of RV where people come and stay for a few days. These have their own meters on them, it seems like a mobile home park except it’s for RV’s.
We have factored in paying an onsite person to manage the property for us. And the cap rate is about 9.9% if all goes as planned. Basically we think it will cashflow about $350 per month.
I did read a negative comment below about RV parks and just wondered if there is something else we haven’t considered.
Thanks,
Mrs. M
Re: RV Park question - Posted by eb
Posted by eb on September 07, 2003 at 23:41:13:
just curious, what was the asking price on the park?
Re: RV Park question - Posted by Chuck
Posted by Chuck on September 04, 2003 at 12:00:39:
Are you saying that these 15 spaces have RV’s on them that NEVER move? …that these spaces are occupied EACH and EVERY month? …month after month? …just like a mobile home park is? …and that each space is seperately metered, with each tenant paying their own utilities?
If the answer is yes… then the negative comments you read… which we’re probably mine and referred to “real” RV parks having 60% of their income go to pay expenses… don’t apply here.
Even so… on-site management for something this small would be overkill… and a $350/month profit proves this, it’s simply too thin… most people earn that in a week and they don’t spend several hundred thousand dollars to do it.
In short, it still looks like a JOB… not an investment. Choose wisely… the silk purse you think your buying will be a cow when you go to sell it.
Re: RV Park question - Posted by ScottS(NC)
Posted by ScottS(NC) on September 04, 2003 at 07:38:27:
Mrs.M,
Think Long and hard about this! This deal looks WAY to slim for my likings. When I buy a single land mobile deal I like $200+ per month cashflow on each deal. To manage 15 Rv spaces for $350 is crazy in my book. I don’t want to be mean but I would rather warn you stongly then let you jump into a nightmare of working for free or worse. PASS on this deal you can do much better! Get Lonnies book Deals On Wheels he will show you how to make $350 a month with a few thousand dollars and very little risk. Take Care ScottS(NC)
Re: RV Park question - Posted by Phil Pelletier
Posted by Phil Pelletier on September 04, 2003 at 17:33:48:
True. Be careful. It won’t take much in the way of a problem to create an alligator to gobble up your cash each month. What if 6 people start their RV’s and drive off into the sunset? Then you are paying your mortgage and losing $800 per month while you scramble to find new renters.
No thanks. I’ll stick to Lonnie deals and the occasional forclosed home offer (no takers yet, butI am hopeful and a little scared to pull the trigger on a Real Estate purchase, butI’ll keep you all informed.)
Phil Pelletier