Building an RV park for overnighters?

[jkwilson]

Was talking to my brother-in-law over the weekend and he asked me about ideas for a piece of investment real estate he owns. 120 acres with a 10 year option to purchase more in the future. Location is three miles off a major EW Interstate and about 9 miles from its junction with a major NS Interstate. Property is on a state highway that connects a rapidly growing mid-size city (with a major university) with a town that is becoming a major bedroom community for the bigger city.

Hopes are that about 20 years out, this property will be in high demand for commercial or residential development. It is fairly flat and is currently in hay production.

I mentioned that a no-frills RV park intended for overnighting or people visiting family might be a way to increase the income from the land without extensive investments. Gravel pull-throughs with electrical service and water. Dump station would probably be a cheap perk to offer. Could start small and add sites as wanted or needed without requiring a massive investment up front.

The exit off the interstate has a few fueling places including a truck stop/travel center.

Is it foolish to consider? Advice?

[colliehauler]

I think a person could make some money with a overnight/storage lot. Would have to make sure there was a market in your area.

A local rv park has a facility for horses as well as rv's, niche market.

[ol_Bombero-JC]

jkwilson wrote:
Property is on a state highway that connects a rapidly growing mid-size city (with a major university) with a town that is becoming a major bedroom community for the bigger city.

I mentioned that a no-frills RV park intended for overnighting or people visiting family might be a way to increase the income from the land without extensive investments.

The exit off the interstate has a few fueling places including a truck stop/travel center.

Is it foolish to consider? Advice?

*If* the homes in those nearby cities do *NOT* have lots that can accommodate storage of RV owners rigs (or CC&Rs that don't allow same) - a better choice would be a storage facility.

Good luck with your 'development'.

~

[westend]

An evenly haphazard business plan would disclose the profitability of the endeavor.

Building an RV park isn't trivial. Heck, where I live, building a garage is a chore. The property would likely be rezoned. Maybe you could get that done with a few dinner invites and some handshakes but that is getting rarer. I'd assume surveyors, landscape architects, lawyers, and a ton of time just to get the ball rolling.

Beyond the other intrinsic costs, the practicality of investing in development has to be weighed against possible returns. From the descriptions, the land may be better suited to a storage facility.

[free_radical]

jkwilson wrote:
Was talking to my brother-in-law over the weekend and he asked me about ideas for a piece of investment real estate he owns. 120 acres with a 10 year option to purchase more in the future. Location is three miles off a major EW Interstate and about 9 miles from its junction with a major NS Interstate. Property is on a state highway that connects a rapidly growing mid-size city (with a major university) with a town that is becoming a major bedroom community for the bigger city.

Hopes are that about 20 years out, this property will be in high demand for commercial or residential development. It is fairly flat and is currently in hay production.

I mentioned that a no-frills RV park intended for overnighting or people visiting family might be a way to increase the income from the land without extensive investments. Gravel pull-throughs with electrical service and water. Dump station would probably be a cheap perk to offer. Could start small and add sites as wanted or needed without requiring a massive investment up front.

The exit off the interstate has a few fueling places including a truck stop/travel center.

Is it foolish to consider? Advice?

Not foolish at all,,foolish is not taking a jump when you have a chance..!
Consider all the options and most important ask yourself this;
Whats the worst thing that can happen..and
What do you have to lose if it doesnt work out!

[free_radical]

the bear II wrote:
With the tiny house movement being so popular along with many folks choosing to fulltime RV lifestyle as a way to saving on housing costs, an RV Park aimed at overnighters plus long term stays for RVs and Tiny Houses might be a good investment for the near future... not sure how long this trend will last.

Unless regular house prices drop way down,,I dont see it ever stopping

[free_radical]

westernrvparkowner wrote:

DrewE wrote:
I would think that a mobile home park may be more lucrative than an RV park. You have year-round use, more predictable income, and less manpower to keep it running. There's no dump station needed, no showerhouse, perhaps even no office needed. There might be some affordable housing state aid programs available to help develop it in some cases.

At least here in Vermont, the design and permitting for a sewage system for a campground would start to approach an extensive investment in itself, to mention nothing of its installation. It would likely be simpler if municipal sewer is available and had sufficient capacity.

Yep, I bet the neighbors will welcome a mobile home park next door. Also, once you have a mobile home park, most jurisdictions (and the renters) make it nearly impossible close up
As for "tiny homes", I am still waiting for someone to post links to actual tiny home communities. A few RV parks and mobile home parks have changed their names to try and capture that supposed market, but I haven't seen one yet that is actually a community of those homes. Until proven otherwise, I will continue to believe "tiny homes" as a movement exists only on Television. Yes, there probably is a movement away from McMansions to more reasonable sized homes, but that is a switch from 3000 - 5000 sq ft to 1000-2000 sq ft. Smaller, yes. But hardly meeting the definition of a tiny home.

Tiny homes?like these maybe
https://youtu.be/iWGa7qyGO8M

[doxiemom11]

We seek out those type of places to stop when traveling. Why do we want to pay $40 night just to sleep there. Participate with Passport America as one of their campgrounds and you will get lots of travelers willing to drive that 3 or 9 miles to stay at a reasonable rate. Electric/Water and a dump station.

[darsben1]

3 miles on a crappy road
or 3 miles on a very nice well maintained road?

[SDcampowneroper]

find the need first, then the location, then plan the facility.
We are on the road today from KC to DC via I 64, could not find a convenient park along I 64 between Mt Vernon, Il & Lousville, Ky. so with mobile research we found a hard to get to but nice public park near Carmi, Il, Burrell Park Campground. $18/n fhu
I would have gladly paid twice the price to have found an overnight park with easy I-64 access halfway between Mt. vernon & Lousville. Saw several places a park could be, water access, historic interest, Winery or some such near.
Maybe you have the right idea, just not the right location for it.
To learn more, come to the ARVC ( Nat. Assoc. of RV Parks and Campgrounds) convention in Raliegh, NC Nov. 5-9. Look for us there.
Max

[John___Angela]

Water and power on site wouldn’t interest us butadump site and place to fill up the water tank on the way out would be nice. Maybe a few street lights and a very strict dog on leash policy would be a must. We would pay 20 ish bucks for something like that. We are in a casino tonight and would really rather be off the beaten track a bit. Problem is most camp grounds only provide hook up sites for amenities we never use or need in a Class A.

To each his own.

[Piddlers]

There is a no frills RV park right off I65 north of Alabama on the Tennessee side that always appears to be full by late day, early evening. I have read several posts on this forum regarding how nice the owners are and RVers appreciate them, and they use it as a one night stop.

It may have taken them a few seasons to build their reputation and get it advertised, but now it appears that you have to get there late afternoon to get in.

[2_Retired]

As an Rver, I would love this option, but have no idea at all what creating this entails. So many realities would have to be known - including all that have been presented by previous posts. Do your homework before taking the plunge!

[Matt_Colie]

As we are travelers more than campers, we are only looking for a flat quiet place to spend the night. If it is the third or fourth road day, I might be looking to dump and take on potable too. As said, that is the exception. So, why do I need to pay for a closed swimming pool, a game room, a gym aka weight room, a pool table, a kiddie park and conference rooms? No reason that I can imagine. For this, all the free parks work great for us.

We did pay for Meadowbrook RV Park in Muskogee. That was 20$, but I did need the afore mentioned services.
We also have found:
Washington Park in Sheriden WY, Free to ONP, but some things cost.
Randolph City Park, Randolph NE, They ask for a contribution WE & Dump. It was Sunday and they didn't even have a mail slot in the town office.
Pioneer Park, Torrington WY, ONP is 10$ WE & Dump.

We seldom stay more than a single night unless it is for an event or a rally. If you look hard, there are lots of places nicer than Walmart, but very few are better for re-provisioning than is the Wally RV Park.

Keep Hunting, they are out there.

Matt

[westernrvparkow]

mockturtle wrote:
If the location is genuinely convenient then it sounds like a worthwhile idea. I like no-frills overnight RV parks. My ideal would have just water and electric at the sites with a dump station available. Don't need bathrooms or laundry (altough some people probably want at least showers and toilets). Charge no more than $20/night. I have never parked overnight at a Walmart. Nothing wrong with doing so but some of us prefer the security and hookups, especially in hot weather.

Three miles off of one interstate and 9 miles from another is not exactly genuinely convenient. My best guess would be the three mile distance would deter maybe 50% of the highway travelers and the nine mile distance deter 90% plus. In my opinion, unless the park is on a highly traveled (by RVers, not commuters) secondary road, it's location is not suitable to draw overnight guests.
True variable costs to have a guest on a site run somewhere around $5.00. That would include the cost of electricity, water and sewage, credit card charges and fees, as well as miscellaneous items such as bath house supplies etc. That would leave you gross profit of about $15.00 a site to cover all your fixed costs such as wages, insurance, advertising, repairs and maintenance, utilities independent of occupancy (such as electricity for office and common areas, wifi, cable television, trash pickup), property taxes and debt servicing. Only then can you talk about a return on your investment. I do not believe it is possible to break even, much less turn a profit at $20 a night.

[mockturtle]

If the location is genuinely convenient then it sounds like a worthwhile idea. I like no-frills overnight RV parks. My ideal would have just water and electric at the sites with a dump station available. Don't need bathrooms or laundry (altough some people probably want at least showers and toilets). Charge no more than $20/night. I have never parked overnight at a Walmart. Nothing wrong with doing so but some of us prefer the security and hookups, especially in hot weather.