Closed park evaluation

texas

#1

I’m looking at a closed down RV park in Cleburne Tx on 2.6 acres.
it has 21 spaces on city sewer and county water. Park closed because last owner let it turn into a hell hole with health violations everywhere. there are two rv parks within 3 miles of it and they are both at full capacity. park1 has a rent of 550 a month park2 is 380 a month.
seller bought at auction and is only interested in flipping it he’s asking 280k.

a mobile home park up the road just sold for 400k it had 30 spaces 7 occupied

any help would be appreciated


#2

I guess its a dependent on what you can buy for, if you can buy it, and if the city/county will let you to continue operating it as an RV Park. They basically closed it down so thats a long conversation you need to have with them. Some areas allow grandfathering of parks but I can very well see them possibly come back and say you can’t grandfather it because it closed down. A lot missing here But it can very well work.


#3

Check the city’s sunset provisions (usually in the zoning ordinance) if they have them. It means if the usage has ceased for a certain period of time that the grandfathered usage has been wavered and the property must conform to the zoning map.

If the ordinance does not stipulate then you should get something in writing with the city that they will continue allowing it to operate as an RV Park…potentially with a certificate of non-conformity or just a simple letter from the zoning department (or equivalent).

Keep us posted.


#4

At $280k, you’re paying $13k+ per space. Plus any rehab or upgrade of the spaces.

What would it cost to start from scratch? (And could you?)


#5

the city has changed the zoning. it would need to be put under a 60-day contract, have a site survey drawn ( I have no experience with site surveys ) and attend a city council meeting to get the permit =. I am currently trying to get the seller to come down some.

also, I have never owned a park with city sewer who is responsible for repairs to the lines?

will give you updates thanks for helping


#6

I wouldn’t care about anything until the city assures me I would be able to run it as an RV park and that they would forgive all fines. The rest is trivial.


#7

I really wish there was good news here, but there’s not. You should continue to look into things for educational purposes, but I’m very pessimistic you can get the zoning changed back and pricing right as others mentioned for this to be a viable investment. This is very much an uphill battle when the city has been burned by a bad property owner.

Be patient and look for a better deal. All the best.


#8

If the seller is unable to sell the property you may offer to do a short-term lease with a lease extension and a purchase option. This could allow you control of the property to attempt a re-zoning and market test. Maybe reducing you exposure to a few thousand dollars if it doesn’t work.


#9

Look for unpaid health violations you inherit and any unpaid liens for contractors or taxes. You are responsible for utility lines inside the park- get an inspection