westernrvparkowner wrote:
Forget what can happen. Just view it as a math problem. What can the rents generate? Be realistic, plan for down time between rentals because you will have to clean and service it and you cannot be sure everyone will return it on time.
Next, deduct expenses. Repairs, rental commissions, insurance, cleaning expense. Supplies like propane, toilet paper, dishes etc.
Don,t forget taxes and the added bookkeeping costs. Finally figure in depreciation and declining rents over time. Unlike real estate, age very much impacts rents. It is likely you will have to lower you rent every year as your rig gets older, unlike real estate. Finally, unlike real estate, at some point your rental unit will become close to valueless.
Put it all together, then redo your numbers by decreasing your rent estimates by 25 percent and incrasing your costs by fifty percent and you will then have a fairly accurate estimate of how your investment will really pay off. Please note there is no place to account for the sleep you will lose, the Prozac you will need or the time you will spend chasing all the loose ends.
