Hello. I am in contract to purchase an RV Park in Texas. I live in California.
Does anybody own RV parks out of state?
What is a general formula to put a value on RV Park?
How different of investment is RV Park compare to MH Park?
All your help is greatly appreciated.
Alexander.
Post Edited (08-21-06 02:56)
Alexander,
I have stayed away from RV parks because they are much more management intensive. I have several friends that have owned RV parks in South Texas and have sold them as quick as they bought them (and they live in Texas). I would think that managing a RV park from afar could be extremely time consuming and potentially dangerous.
If the RV park is extremely stable and the tenants are long term that could be a different story.
Corey
What part of Texas are you looking at and how much do you want to spend?
Lynn
MH Park owner
I am looking at a park that has 170 spaces.
The price is $1.250M.
Current gross is around 300K
Alexander.
There is some merit to owning an RV park, especially if you find a motiviated seller. Many of these parks were built years ago, and are situated on land that has become very desirable for developers. Your best bet would be to look at a site for the RV industry, called ARVC.org. They are a national association, that works for park owners and vendors. Let me know what state the park is in that you are looking to buy, and I can provide you with the states executive director, who will know more details specific to that area.