TriumphGuy wrote:
bikendan wrote:
Did anyone read the OP's post?
He asked for input from those who HAVE rented their RV. Not from those who just object to the concept.
The majority of responses are NOT from those who have actually done it, which the OP specifically asked to not post.:S
I have my opinions but I've never rented my RV, so I honored the OP's request.
You get the awesome award today. Thanks for reminding everyone.
I do appreciate the responses, but I'm not talking about renting personal property. I'm talking about creating a business entity to own the motorhome and manage everything. I am researching to see if there is a sustainable business model hidden in between what everyone else is doing today. Our own personal Class A is not a part of the equation :)
I have a good friend who owns vacation rentals and makes good income with it. He doesn't depend on the appreciation over time, he chooses where he invests so that everything has good cash flow. If he thinks it will generate the income, he puts his money into it. He doesn't care for paper assets and for my part I have enough in those and want to try something different.
So his approach made me wonder if I could have a go at a rental RV and - like him - not depend on the appreciation but do my market research and get the right unit marketed in front of the right people.
For example, look at the trends towards more motorized RVs and what Millenials are gravitating towards. You'll find some interesting stuff. Vans and B conversions are a big thing on YouTube. There's many people who aspire to the experience but can't afford to buy. Compare the typical CruiseAmerica fleet to their needs, and what's missing?
DiskDoctr wrote:
Perhaps if you can buy a used unit that has had its initial depreciation, rent it 1-4 years and then sell it at near your original purchase price?
Unlike real estate that still has resale value that is often HIGHER over time, the RV value depreciates with very few exceptions.
Buying an RV "right" so you can resell it and make money- then rent for a month or two in between...that might be a profit generator. But if something happens and you can't sell it or have to discount or damage, etc...
This is what I'm thinking about - I've been around RVs for almost 2 decades and can smell a good deal when I'm near it. I browse listings from time to time and see deals come and go. Most of what I've bought, I've sold for the same a few years later.
DownTheAvenue wrote:
As a lawyer, I can tell you in owning and then renting any vehicle, your biggest concern is protection- protecting yourself from any liability and protecting your asset from damage and theft. I bet any agreement you engage in with a rental firm protects them more than it protects you. Remember, any insurance you now have for certain will not cover when rented. You will need a special policy for that. Make sure you have your bases covered if you decide to place a personally owned asset into any rental arrangement.
Thanks for that great feedback. Just after a cursory look it's clear that the rental firm is in business for them, not you. As I've learned from other experiences, a conversation with my CPA and lawyer is never a bad idea :)
Well keep the ideas coming. Helps me to think more things through.
Thanks!
Sounds like you have it all figured out and really didn't want or need anyone else's imput. However, not being concerned with appreciation, depreciation or resale is an incredibly odd financial position. Even if you were to get a fifteen percent net cash flow over 10 years, if your original investment cannot be recovered, your net income on that investment drops from a 15 percent rate of return to something much less than a four percent compound rate. There is a reason there are hundreds of thousands of people who own rental real estate and almost no one in the rent a couple of RVs business and I seriously doubt it is because you thought of something no one else has.
