Transcription
4 years ago, I bought my first real estate investment, which was a house. I didn't even tell my husband about it. Today, I own six RV parks, and my total portfolio is worth $51 million with $32.5 million specifically in RV parks. I'm Michelle Bisan, and if you've been thinking about getting into RV parks, but don't know where to start, this video is your complete crash course.
Here's what most people don't realize. While everyone's fighting over overpriced single-family homes and apartment buildings, there's this massive opportunity that's hiding in plain sight. RV parks are solving two of America's biggest problems right now: Affordable housing and affordable vacations. While Disney costs $300 per night and hotels are crushing families financially, RV parks offer $60 nights where families actually reconnect around campfires instead of screens. Plus, it solves the affordable housing crisis by offering long-term stays for under $1,000 a month.
But here's a real opportunity. 90% of America's 17,000 RV parks are owned by mom and pop operators who just want to retire and don't know how. That's thousands of motivated sellers, and most investors don't even know that this market exists. By the end of this video, you'll know exactly how to find your first RV park deal, what numbers to look for, how to structure it with little to no money down, and what pitfalls to avoid. So, let's dive in.
First, you have to understand the business model. Before you start looking at deals, you need to understand what you're actually buying. An RV park isn't just real estate. It's a hospitality business sitting on top of land. Here's how I typically structure some of our parks for maximum profitability. And it's called the hybrid model. This is where 25 to 33% of the people who live in our parks are year-round and they live there for under $1,000 a month. And you think retirees, baby boomers, people who want affordable housing with a community. Now, these guests pay all of your bills, your utilities, your staff salaries, loan payments, everything. 66 to 75% of the people who are on the park are short-term guests. Think families on vacation, weekend warriors, seasoned travelers, and they're all paying $60 to $80 per night. Now, since your bills are already covered by the long-term residents, this is just pure profit. This model gives you stability and the upside that your bills are always paid, but you can scale revenue through occupancy and amenities.
Second, you need to know what to look for. Not every RV park is a good investment. Before you start looking at deals, you need to establish clear criteria for what makes a profitable park. Here's what you should consider. Size matters. You need enough pads to create diverse revenue streams and justify proper staffing. Too small and you can't implement effective business models. Cash flow requirements. The park needs to generate enough NOI, which is net operating income, to cover all operating expenses, staff, salaries, and still provide owner profit. Location dynamics. Understand what draws people to that area. Is it the tourism industry or is it the park itself? This will determine your guest mix and the pricing power. Infrastructure condition. Utilities are the backbone of any RV park. Failing systems can turn a good deal into a money pit overnight. Market demand validation. Make sure there's an actual demand for RV spots in the market before you buy. For example, my personal criteria is a minimum of 50 pads to make the hybrid model work. The target 200,000 or more NOI to cover four staff members plus a profit. Strong location drivers. One of our parks benefits from 10 million annual visitors and that's all to a nearby attraction. Functional utility infrastructure. Electrical, water, sewer systems in good condition. Proven market demand. We call all the parks around us and find out if they're busy, how busy they are, and what events are happening.
Third, you need to find deals. Here's where to find your first RV park opportunity. First, direct a seller. Drive around. Look for tired, rundown parks. These owners are often burned out and are ready to sell, and we've acquired a couple of parks this way. Second, brokers and agents. Build relationships with commercial brokers who specialize in hospitality or recreational properties. Tell them exactly what you're looking for. Third is word of mouth. This is huge. Tell everyone you know you're looking for an RV park. Our second part came from someone who just said, "I know someone you should meet." Fourth is online marketplaces, Loopnet, Krexy, and specialized RV park listing sites. Set up alerts for your target criteria. And lastly, baby boomer networks. Many park owners are 65 and over and thinking about retirement. They built these as their retirement plan, but now face this massive tax implication from selling.
Fourth, you have to break down the numbers. You need to make sure that the numbers make sense. Let me show you exactly how to analyze an RV park deal using real numbers from one of my acquisitions. So, picture this. The property is a 50-pad park asking $1.8 million. Current revenue is $450,000 annually. Current expenses $150,000 annually. Current NOI $300,000 annually. At asking price, $300,000 NOI divided by $1.8 million equals a 16.7% cap rate. Monthly debt service with 80% financing was $8,500. The annual debt service $102,000, which means we're cash flowing after debt $198,000 annually. But here's the key. Always verify these numbers. Sellers often inflate income or hide expenses. You need to make sure that you're requesting three years of tax returns, bank statements, utility bills, all rental agreements, maintenance records, value-add opportunities. Make sure you're getting all site agreements, and maintenance records.
Next, you have value-add opportunities. How can you increase the NOI? You can raise rents to market rates, add amenities like ice machines, golf cart rentals, convenience stores, install individual electric meters, and increase occupancy through better marketing.
Fifth, utilize creative financing strategies. There are many ways you can acquire an RV park, and you don't need millions in the bank to get started. The key is to understand that most sellers have problems that you can solve through creative deal structuring. Here's how I've acquired parks with zero money down. Seller financing. The seller becomes your bank. Instead of getting a lump sum, they get monthly payments over 5 to 10 years. And this will help them avoid massive tax hits while giving you access without traditional financing. Lease options. Lease the park for 2 to 3 years with an option to buy. Use the lease period to improve operations and cash flow and then exercise your option using the increased value. Joint ventures. Partner with someone who has capital but lacks RV park expertise. You bring the knowledge and management and they bring the money. Split ownership and the profits. The key is to solve the seller's problem. Most want to retire but fear the tax implications. Creative financing lets them get steady income while avoiding a massive tax hit.
Sixth, you have to understand the revenue model. Now that you know how to find and finance the deal, let's talk about what makes RV parks such powerful wealth-building machines. Unlike other real estate investments where you collect rent and hope for appreciation, RV parks are actually businesses with multiple profit centers. When you buy your first RV park, you're acquiring multiple income streams. Site rentals, which are your base revenue for RV pads. Utilities, which is electricity, water, sewer, often charged separately. Amenities, pool passes, Wi-Fi, cable TV. Retail, you're adding convenience stores, ice, firewood, propane. And then you can add activities, golf cart rentals, arcades, mini golf. Storage, boat and RV storage during offseason. And events. You can coordinate weddings, corporate retreats, and festivals. And this is why RV parks can generate such incredible returns. You're not just a landlord. You're not a landlord at all. You're running a hospitality business with endless opportunities to add value. Golf cart rentals bring in another $100,000 per year on one of our parks. We also have acquired RVs with zero money down to rent, and two of those make almost $50,000 annually.
The seventh is building your team. You cannot run an RV park alone. And here's the team you need. An on-site manager that lives on the property and handles the day-to-day operations. An office manager that handles reservations, check-ins, and guest services. Maintenance person, and that person handles repairs, utilities, and all the groundskeeping. Make sure you have a cleaning crew if you have rentals that keeps the facilities and the common areas pristine. A pro tip: when possible, hire couples. They often want to live on-site, work together, and can cover multiple roles while building the community with guests.
Look, starting your first RV park isn't about having millions in the bank. It's about understanding the business model, finding motivated sellers, and structuring creative deals. The opportunity is massive right now. Baby boomers want to sell. Families need affordable options. Most investors are still chasing overpriced apartments and houses. The most important thing: take action. Like I said, I bought my first real estate investment without even telling my husband, and it changed our entire financial future. You don't need perfect information. You just need to start. If you want to dive deeper into exactly how I structure these deals, how we analyze parks and build teams that run without me, make sure to subscribe. I'm sharing everything I know about building wealth through RV parks.