Building an RV Park from scratch under 50k?

westernrvparkowner wrote:

myredracer wrote:
There'd be numerous codes, regulations, and standards that would have to be complied with if doing it fully permitted and inspected. Some of them are:

The NEC has specific requirements for RV parks. How much is the power utility co. going to charge for a connection? Electrical alone would eat up a big chunk of the $50K.

There's NFPA 1194 "Standard for Recreational Vehicle Parks and Campgrounds" that covers fire protection and a number of other things.

In Texas there's TCEQ (Texas Commission on Environmental Quality) which covers water supply, wastewater and storm water disposal, garbage disposal and outdoor burning. 15 or more sites can be considered as a public water supply. Texas TCEQ

There's no contingency fund to put towards any unforeseen costs? There could very well be a whole lot of them you never knew of or thought about.

Has there been any analysis of projected income versus operating costs? According to one source of info. I read, it takes 125 sites to break even.

Any savvy investor wouldn't go near it.

Doesn't take anywhere near 125 sites to be profitable. Say you had a 40 site park and built it for $800,000. Operates for 8 months out of the year with a 60 percent occupany rate (not bad, but not exceptional either) At $40 a night, that would be revenues of $230,000. Figure operating costs of about 30 percent, you will have net income of about $160,000. That's a 20% return on your investment, not too bad. Even if you paid a manager couple $5,000 a month for those eight months, instead of running it yourself, you would have a return north of 15 percent. Can't get that on your savings account.
The trouble with the OPs situation is $50,000 is a far cry from $800,000 and building a park in the middle of nowhere won't ever generate $40 a night rates or 60 percent occupancies.

Could you break down the math a little more. Give us the break down on operating cost it you could please.