Rv Resort lot for sale question

[Stuart W]

Originally Posted by Sandy Swede

We are currently renting a site at Hilton Head Motor Coach (not motor home - Motor Coach $$$$) Resort. Without a doubt the nicest place we have ever stayed in our rig. Will be here for two weeks. May have to start a Go Fund Me page to pay the bill ($90/day).

Everything is relevant, here on the southern west coast, $90 is deal at the low average, seeing weekend rates above $110 per night. Some of the posh desert resorts are close to the mid $150’s, they book like hotels based on utilization = not to many open spaces, rate goes way up.
I need to head south east

[Dutch Star Don]

I think there are some considerations that you need to keep in mind. First, if you can afford to buy several lots and let them sit, then no big deal. There is no guarantee that they'll profit from renting, especially if there is another fuel increase or recession. If you have a lot you snowbird on every year, I think that is different than what the OP is asking.

There is place near us, Big Bear Lake, that has a really nice park with some great lots, that are very pricey, the cheapest is about $150K to about $450K. It would be neat to have a lot, but here's why it's not for US. We often RV with our two adult children and grand children, who both have large fifth wheels. Buying the lot would only allow us to stay there and would eliminate some trips with the kids. When not RVing with our kids, we have another couple we travel the country with and a single lot would be the same issue.

Second, if ownership of the lot(s) has no financial impact on your life, great, but if it does, you then start feeling the need to use the lot versus travel to other places. Now, none of these things may impact you, but the guilt of not using a space because it sits unused could be an issue for some.

Lastly, property is property and is usually a good investment, depending on your age.

[TXTiger]

I would not purchase a lot as a investment with the idea of renting it out for a profit. I would purchase a lot because I like it and the location and I want to stay there. If I can also rent it out and make some rental income that would only be icing on the cake.

[rlott2k]

We purchased rural property. We have 2 RV sites and room for tents. It seems it’s about the same price as a RV park lot. It’s 1/3 acre. Would this be an option for you?

[TJ]

Originally Posted by TXTiger

I would not purchase a lot as a investment with the idea of renting it out for a profit. I would purchase a lot because I like it and the location and I want to stay there. If I can also rent it out and make some rental income that would only be icing on the cake.

Exactly right!

We own an RV lot at a premier motorcoach resort in Montana because we like to spend time there. And, we do rent it out when we're not using it.

There's a lot more to renting out an RV space than just collecting the fees. First, there are a considerable number of expenses, including (but not limited to) electric service, propane service, property taxes, HOA fees, liability insurance (if you think you don't need it, don't get into the rental biz), state income tax (yeah, even if you are a legal resident of another state), and the list goes on.

You will also have to report your "income" to the IRS but can deduct some of your expenses against it. The tax man requires that you pro-rate expenses according to how many nights you spend on the property vs. how many nights it is rented.

And, if you have to finance the purchase of an RV lot, you will probably be upside down for quite a while. Buying RV lots for rental potential alone is a losing proposition. If you can pay cash and avoid the financing costs, you can usually break even over the long run.

Last year we had enough rental income after taxes to cover our all of our expenses...but barely. And, we got to use the lot for two months. The up side is that if you do your homework, buy the property at a good price, and don't have to finance the purchase, you will always have the underlying value of the land in your favor when you...or, your heirs...decide to sell it.

TJ

[67vette]

We have looked at RV Sites all over AZ,FL,AL,TX,SC, and they are all very different from HOA to how the rent $$ are managed. So location, size, and how mature the landscape is/privacy were most important to us and we just bought at Hilton Head Motor Coach Resort not the Marina, and as mentioned earlier its very expensive to rent BUT is absolutely the nicest RV Resort we have ever stayed. If I can cover taxes, HOA, and Utilities with rental income the first yr I will be extremely happy. We sold a condo that we owned in HH to buy our DSDP and now we are back in a place we love to spend time. Lots of options out there

[BobKatMsu]

Make sure you check with your CPA on the number of days you can use the spot for personal use and still be able to use expenses on your taxes. I used to own a log cabin outside of Gatlinburg, TN. that was a number of years ago and I don't remember exactly what the numbers and percentages were, but I do remember you were limited to a certain number of personal days or it had a negative affect on taxes.

[MisterT]

I would think that a RV Resort 'site' would be the best and easiest 'second home' to potentially rent out when not in use, though I would not do it specifically for an income, but just an offset of current ongoing costs.

An RV site/lot is fairly simple, not much 'management' to it, and since it can be a simple concrete slab with utilities, not much to 'clean up' afterwards. There's no beds to be made, or kitchen to be scrubbed, or bathroom/shower to sanitize. Sounds a LOT better than an AirB&B of my mother-in-law suite!

Personally, I would rather the management handle the ins/outs of the rental process, with a fee included, but doing it directly might still be doable, especially if the renters that are viewing your site/lot are looking at long-term stays. And, if you don't have a 'minimum stay' requirement, you might find it too time consuming.

We have reservation at just an RV Resort like this, near Asheville NC, for part of our June getaway. It's an owner's park, but with a management that handles owner's site rental, if they wish. The company has a website, photos, information about each site, and cost associated with each one, as well as any 'minimum' stay times, or black-out dates, etc. Everything is included - 50a, w, s, wifi, cable, etc.
We made reservations, via email, and received a confirmation in a few days. But, we later received a follow-up email giving us pause - the owner decided to take care of some 'work' on our site during that time, but gave us two other site options that they also own.
One was an on-the-water site on the water, and the other was right next to the one we had originally chosen - either for the same price we originally agreed to, although the on-the-water site was originally priced much higher. A nice option. We'll see how it goes.

[DrPhil]

How are these types of places found?

[Wundertaker]

Originally Posted by Sandy Swede

We are currently renting a site at Hilton Head Motor Coach (not motor home - Motor Coach $$$$) Resort. Without a doubt the nicest place we have ever stayed in our rig. Will be here for two weeks. May have to start a Go Fund Me page to pay the bill ($90/day). There are approx a dozen lots for sale anywhere from $60k to $100k. Only two would accommodate our 40' rig and the others were not all that well located or aesthetically appealing. I am guessing that the primo sites which come up for sale have a waiting list and would be priced in the $150k range. Monthly POA is about $200. You can rent out your site. It is a gated community with large pool, tennis courts, and clubhouse.

Scroll down and take the video tour. As my son would say, "How sick is this?"
Home - Hilton Head Island Motorcoach Resort

Have been there! A nice place yes. Would I buy there no. The resort was cold. Most everyone we met were cold and full of themselves...and much of the conversation would center around the size and age of their rig and how many Prevost they had before their current abode. Many wealthy people spending their time out doing each other. Just wasn't for us.....different strokes...

[Blondiega1]

We just left Heritage Motor Coach Resort in Orange Beach, AL this morning. Fantastic class A only resort. The lot we were on was for sale. It was waterfront over looking the bay with a nice large front yard, outdoor kitchen, fire pit and a spectacular patio. It had a casita which we did not have use of. All that could be yours for $700,000.
The daily rate was $149. This lot was double the cost of every other lot for sale in the place and no where near worth what they were asking.

[FLSteve]

Originally Posted by TXTiger

I would not purchase a lot as a investment with the idea of renting it out for a profit. I would purchase a lot because I like it and the location and I want to stay there. If I can also rent it out and make some rental income that would only be icing on the cake.

This was pretty much our thinking when we bought a lot at Hilton Head Motor Coach Resort about two (2) years ago. We had rented there several times and liked the area and the resort. Our son was also stationed at Parris Island close by so it made visiting family easy. We have not used it as much as we originally thought but when I retire in a year we hope that will change some … however we do want to take some longer trips, so the lot may have to fit in when we pass by.

In the meantime, we do have the lot in the rental program and it has been about a break-even situation with the HOA fees, property taxes and liability insurance. Lot values appear to be increasing, so when we do sell the lot down the road we hope to get our money back and maybe even make a little as well. Like any real estate purchase, there is always a risk … but to date we are still glad we bought it.

[bruceisla]

The short answer is "maybe". A lot depends on where it is located and your use of the site. If you purchase a motorcoach lot in Florida, and plan on using it for the entire/most of winter (high season) and renting it in the summer (off season), it's probably not going to happen. Very few rentals in FL in the summer ... you are still paying taxes/electrical/HOA/flood ins./liability ins./homeowner ins. fees. Think it over and check your math .... then do it again. Ask for the "rental occupation data".

[rlott2k]

Originally Posted by rlott2k

We purchased rural property. We have 2 RV sites and room for tents. It seems it’s about the same price as a RV park lot. It’s 1/3 acre. Would this be an option for you?

Btw this is not an offer to sell, just a question if this option might be a good one for you. Large rural property instead of a compact RV park lot.