opening an rv dealership.

It works if you know values well enough and can afford to tie up the money. $20K is not much to start with, at most one unit way below the market level most buyers will be looking for.

A friend recently bought a $3000 to $4000 RV (30 foot motorhome) under $1000, as a "distress" sale, but the reason it was distress is because almost nobody is buying that class of RV and the heirs had been trying to sell it for a couple of years, had to do something to close probate.

Many small used car dealers are doing what you are talking about, but to make a living for a family they need to keep $100,000 to $500,000 tied up in sales inventory, and they are making most of their income on commisions from financing and service agreements (calling them warranty or buyer protection plan) rather than margin on the flip.

Unless you are better than average finding bargains when you buy, to make much on the flip you may have to add perceived value. For cars, you need to really understand cars. For RVs, you need to understand RVs. I know someone in theater tech who does well flipping theatrical lighting and sound equipment, but he would lose his shirt on RVs because he doesn't understand the costs of making one marketable. I say this because I've seen his first RV project sit for three years now.

Not everyone starts out with a lot of cash or investors. I say go for it. One by one, until it grows. Be selective in what you choose. It isn't so much the amount you make on flipping, it's how much you don't spend in time and repairs.

I wish you a lot of luck and if you do it, come back and tell how successful you are!

Dtaylor wrote:
Why don't you purchase one and see what happens. Keep in mind that you money is going to be tied up until you sell

This would be my comment as well; as long as you don't need that $20K, and are willing to gamble it. You have to take a chance with most business ventures these days, so if you can afford this, go for it!
I commend your entrepreneurial spirit!

You could call it Zoomers - wait a minute, that name is already taken, dagnabbit....

Just kidding. :p

Cloud Dancer wrote:
That's right. I too believe you could make a small fortune. But, you would need to start with a BIG fortune.

You misworded that. It should read: "You could end up with a small fortune. But, you would need to start with a BIG fortune."

The problem with the used RV market is financing. Nobody wants to finance a used RV, that is over 5 years old, and the people that have cash buy new. To make it work, you'd need to be a "Buy it here, Finance it here" operation and that takes a lot of capital.

You all laugh, chuckle or have serious doubts. What the OP stated is the modern day version of how Tom Raper started. Anyone not know who Tom Raper is, just Google him and you will get several pages to read.

Why don't you purchase one and see what happens. Keep in mind that you money is going to be tied up until you sell

I would imagine you would owe Washington business and occupation tax too.

We bought our current rig in '08 from a guy who was doing this and trying to develope a small RV park too. I looked at his site about a year ago and he no longer offers RVs for sale but advertise the RV park (and repairs maybe, don't remember for sure). I don't know if this was his orginal plan or not, or if he choose to quit selling RVs.

If you can buy a MH for like $12K that should sell for $25K on a good day then getting $18-$20K should be possible in a short period of time. Consignment could be an option to explore.