“The guy who owns this property claims the same RV folks come every year.”
Many do.
“I know the majority of these folks are older.”
If you mean most are retired, yes… 55 and older is the norm.
“I am wondering if this is a dimishing return as these folks get sick and die.”
People get sick and die everyday. I don’t see what bearing this has on a (seasonal) commodity that’s only generating income when it’s occupied.
Probably the best way to look at a rv park like this one is to compare it to a small motel. The differance is that the tenant/renter brings his own accomidations and your providing the dirt to park it on/utilities they’ll use for a fee.
“Is it feasible to convert full hookup RV sites into mobile home sites?”
The answer (again) is subjective… are the spaces large enough to hold a mobile home? …what about the spacing between them? …will the current zoning allow this change? … is it a economically feasible idea to do so? Only you can answer these questions.
“This is a 20 year old RV park.”
It’s always a good idea to check the infastructure before you buy.
Posted by Eddie-Mi on November 10, 2003 at 16:09:41:
This park has 30 MH lots and a 50 space RV campground. I can seperate the campground from the MH Park if i want to. The RV campground make me leery. I know during the RV season this place has about 25 big RV’s sitting there.
I know I can get in with the right terms with this guy, should I just consider the RV income as irrelevent and evaluate the MH-only?
Posted by Eddie-Mi on November 11, 2003 at 09:49:49:
The guy who owns this property claims the same RV folks come every year. I know the majority of these folks are older. I am wondering if this is a dimishing return as these folks die and get sick.
Another question I have is, is it feasible to convert full hookup RV sites into mobile home sites. This is a 20 year old RV park.
Posted by Howard on November 11, 2003 at 14:17:59:
The second and third parks we bought were Resorts for seniors in the Texas Rio Grande Valley. They were beautiful, seemed to be priced right and we thought it would be less hassle than family parks. Reality - different kind of hassles. Sold one and will sell the other if I get a reasonable price (e-mail if interested). We’ll stick to family parks in the future. Now to answer your question. The elderly year in and year out returnees in RVs will get sick, have to take care of other sick relatives, have problems with their children, grandchildren, and die off. You have to replace a significant number of them each year. With MHPs, you have a substantial number of turnovers also, as with any residential neighborhood. But, the home STAYS. It gets sold, rent comes in, etc. Who knows, you may even buy it on a Lonnie deal. I am only knowledgable about destination resort types of parks. This may not be the same for others. Or the Texas Rio Grande Valley may be unique. Converting RV sites to mobile home sites can be a good option, but most parks have been configured for the smaller RV units and it would be prohibitively expensive to convert. If you have other questions, I can answer off-line as well. Good luck.