If I build it, will they come?

Ramblin · 11-30-2011, 07:48 PM

I will one day inherit some unimproved land (about 2 acres) in the Florida keys, about 30 miles north of key west. I'm thinking of putting in some nice big FHU pull-through RV sites there, along with wifi, catv, etc. Maybe 15 sites. I'm thinking this might be a nice supplimental income for our retirement. There are other much larger RV campgrounds nearby. This land is not on the water, but is very near.

Is demand for winter sites in the keys such that this might be a worthwhile venture? What sort of amenities would entice you to try a new small park over an established mega-park nearby? What are the MUST-HAVE features that would be a deal breaker if not available?

frankdamp · 11-30-2011, 07:54 PM

I think the question you should be asking is "If I want to build it, will I be allowed to do so?" If you get it built, you'll be inundated with customers!

bluepill · 11-30-2011, 07:56 PM

I don't know what your competition has, but I have found a number of campgrounds that have only a few sites that have enough space for longer (35 + Ft.) motor homes. I would make sure that you have sites close to 70 feet for longer class A's with toads. In Florida I consider shade to be very important because of the heat, even in the "cooler" months. 50 amp service is a must for multi A/C units.

SVTotem · 12-01-2011, 09:26 AM

What is your business background Ramblin? You are at an advantage with low land acquisition cost, but development and permitting costs are going to be very high. The number of units may not provide adequate cash flows to cover costs. Be sure to have expert advice preparing your business plan before committing.

You have a great idea, and if done properly, you should not have trouble filling the sites in season. It is a small parcel, though, and may not be able to generate enough income. The Keys are moving away from septic to sewers. Watch the timing of the change over in that area so you avoid installing a new septic system just to be forced to sewer hookup soon there after.

Contact the county to see what the permitting process is and what restrictions there are to developing the lot. The Keys can be a strange place to do business I imagine.

It is a great dream, just keep your eyes open.

Good luck. It could be fun.

GaryKD · 12-01-2011, 06:32 PM

Hi Ramblin,
Consider looking into developing and then selling the lots to coach owners. An upscale luxury motor coach ownership resort might be something that could generate quite a bit of initial profit (from lot sales) and a small income if you are willing to manage it for the owners.

Chezhead · 12-02-2011, 03:55 AM

Have you looked into the Monroe County (Keys) no-growth ordinance? Basically, you would have to buy up 15 existing residential units in order to put in 15 new RV lots. That's why you haven't seen any new RV parks in the Keys in years. Sorry to rain on your parade, but I lived there for 10 years.

Ed-Sommers · 12-02-2011, 09:15 AM

If you build it, you will no longer be in retirement, far from it!

Ed

akadeadeye · 12-02-2011, 09:35 AM

My life long career has been in real estate.

First, determine the real world value of the two acres. Second, calculate a reasonable rate of return on that value annually. Third, add the cost of the RV park to the value of the land. Fourth, calculate a reasonable rate of return on the total package (total value plus cost, times a percentage, say 10%) Fifth, do an objective cash flow model for your RV park which allows for realistic income and expenses, arriving at a Net Income figure. If this Net Income figure is less than the amounts you calculated above, then you are not developing the tract of land to its highest and best use.

Don

Ramblin · 12-02-2011, 10:04 AM

Wow, lots of great information! I knew I would get lots of replies to this. Thank you all for your input.

Quote:

Originally Posted by Chezhead

Have you looked into the Monroe County (Keys) no-growth ordinance? Basically, you would have to buy up 15 existing residential units in order to put in 15 new RV lots. That's why you haven't seen any new RV parks in the Keys in years. Sorry to rain on your parade, but I lived there for 10 years.

Yeah. I called and asked a Real Estate agent I know down there about that. He said our property was ROGO exemption eligible because it had someone living there in an RV that we could show proof of (water bills, etc). He said that I'd have to apply for a ROGO exemption for each proposed site. And submit a $900 fee for each site with the applications. I haven't talked with the county yet. We're going down there the week of Christmas, and will meet with them then. I really like to do stuff like this face to face with someone whose hand I can shake.

You may be correct that they will put the quick kabash on this whole thing. If so, I have a nice paid-for 2 acre spot to park my RV in the keys. I suppose I'd be allowed to have my iRV2 friends down to visit in their rigs for a few months out of the year. Not a bad worst-case.