slug: investing-in-rv-parks

Investing in RV Parks: Complete Guide to RV Park Real Estate

RV park investing has emerged as one of the most compelling niches in real estate, combining strong cash flow, recession resilience, and exposure to the booming outdoor recreation industry. With millions of Americans embracing the RV lifestyle—whether for vacation travel, remote work mobility, or affordable living—well-located RV parks generate impressive returns while offering unique operational advantages.

Understanding RV Park Investments

An RV park (also called RV resort, campground, or RV community) is a property with designated spaces where recreational vehicles can park temporarily or long-term. These facilities range from basic overnight stops with minimal amenities to luxury resorts with pools, clubhouses, and full hook-ups.

Types of RV Parks

Overnight/Transient Parks: Designed for short-term stays (1-7 nights) by travelers passing through. Revenue comes from nightly rates, typically $30-$80+ depending on location and amenities.

Long-Term/Extended Stay Parks: Cater to RVers staying weeks, months, or year-round. Revenue from monthly rates ($400-$1,500+) provides stable, predictable cash flow.

Destination Resorts: High-end facilities near attractions with premium amenities. These command top rates and often fill months in advance during peak seasons.

Hybrid Parks: Combine overnight and long-term spaces to balance revenue stability with higher nightly rates.

Membership Parks: Require annual memberships, creating recurring revenue streams beyond nightly/monthly fees.

RV Storage with Limited Stays: Primarily storage lots with some overnight spaces for owners accessing their stored RVs.

Why Invest in RV Parks?

Explosive Industry Growth

The RV industry has seen remarkable expansion:

RV ownership has grown to 11+ million households
Younger demographics (millennials, Gen Z) increasingly embrace RV travel
Remote work enables extended RV living
"Workcamping" and nomadic lifestyles drive long-term occupancy
Baby boomers retiring into RV lifestyles

This sustained demand growth supports occupancy rates and pricing power.

Exceptional Cash Flow

RV parks typically generate strong cash flow due to:

Lower operating costs than traditional real estate (no interior maintenance)
Minimal staffing requirements
Tenant-owned "structures" (the RVs)
Land-efficient revenue generation (many spaces per acre)
Ancillary revenue opportunities (laundry, propane, cable, WiFi)

Cash-on-cash returns of 15-25%+ are achievable in well-operated parks.

Recession Resilience

RV parks show impressive economic resilience:

Staycations increase during recessions (people cancel expensive flights)
Long-term residents often have fixed incomes (retirees, remote workers)
RV living offers affordable housing alternatives during economic stress
Essential travel and nomadic workers maintain base occupancy

Land-Based Investment Benefits

Like mobile home parks, you own the land while tenants own their vehicles:

No building maintenance (roofs, HVAC, plumbing)
Lower insurance costs than buildings
Reduced capital expenditure needs
Tenants have strong disincentive to leave (moving an RV is costly and disruptive)

Value-Add Opportunities

Many RV parks are mom-and-pop operations with significant improvement potential:

Add modern amenities (WiFi, cable, recreation areas)
Improve marketing and online presence
Optimize pricing strategies
Extend season lengths with winterization
Convert grass spaces to paved pull-throughs
Add long-term sites for stable revenue

Scalability

Start with a small park and scale to multiple properties. Operational systems are highly replicable across different locations.

Multiple Revenue Streams

Beyond space rent:

Laundry facilities
Propane sales
Firewood sales
Cable/WiFi packages
Recreational equipment rentals
Convenience store or snack bar
Storage fees
Pet fees
Event hosting

Challenges of RV Park Investing

Seasonality

Many parks experience significant seasonal fluctuation:

Peak summer occupancy (90-100%)
Winter slowdowns in cold climates (20-40%)
Revenue concentration in 4-6 months

This creates cash flow volatility and planning challenges, though long-term sites and warm-climate locations mitigate this.

Regulatory Complexity

RV parks face various regulations:

Zoning and land use restrictions
Health department oversight (septic, water systems)
Environmental compliance
ADA accessibility requirements
Building codes for amenities
Licensing and permits

Labor and Management

While less intensive than hotels, RV parks require:

Daily guest services and check-ins
Maintenance of common areas and utilities
Cleaning and upkeep
Reservation management
Troubleshooting site issues

Utility Infrastructure

Significant infrastructure needs:

Electrical pedestals at each site (30-50 amp service)
Water hook-ups
Sewer connections or dump stations
Internet infrastructure for WiFi
Road and pad maintenance

Aging infrastructure can require costly replacements.

Location Dependency

Success depends heavily on:

Proximity to attractions or through-traffic routes
Climate and season lengths
Competition from other parks
Accessibility and visibility

Poor locations struggle regardless of amenities.

Financing RV Park Investments

DSCR Loans for RV Parks

DSCR (Debt Service Coverage Ratio) loans can work well for RV park acquisitions:

Income-Based Qualification: Lenders evaluate the park's historical revenue and expenses to determine loan approval, ideal for investors without traditional W-2 income.

Challenges: Some DSCR lenders are unfamiliar with RV parks and may categorize them as higher-risk. Work with lenders experienced in hospitality or alternative property types.

Seasonal Revenue: Lenders comfortable with RV parks understand seasonal patterns and evaluate annual income rather than being concerned by monthly fluctuations.

Example [DSCR Calculation](/blog/how-to-calculate-dscr):

Annual [net operating income](/blog/net-operating-income-guide): $250,000
Annual debt service: $180,000
DSCR: $250,000 / $180,000 = 1.39

This 1.39 DSCR demonstrates healthy cash flow for financing approval.

SBA Loans

SBA 7(a) loans work well for RV park purchases:

Up to $5 million loan amounts
10% down payment requirement
Competitive interest rates
25-year amortization
Requires owner-operator involvement

Commercial Mortgages

Traditional commercial lenders offer [RV park financing](/blog/dscr-loan-rv-parks):

Typically 25-30% down payment
20-25 year amortization
5-10 year terms with balloon payments
Require strong financial history

Seller Financing

Common in RV park transactions:

Sellers often willing to carry notes
More flexible terms than banks
Lower down payments possible
Faster closing timelines

Cash Purchases

Many investors, particularly those acquiring smaller parks, buy with cash to avoid financing challenges and strengthen negotiating position.

Evaluating RV Park Opportunities

Location Analysis

Prime Locations:

Near national parks, state parks, or natural attractions
Along major interstate highways (high pass-through traffic)
Near popular tourist destinations
Warm climates with year-round occupancy
Areas with festivals, events, or seasonal attractions
Near major cities (weekend getaway markets)
Regions with outdoor recreation (fishing, hiking, boating)

Location Red Flags:

No nearby attractions or through-traffic
Extreme seasonal limitations
High competition with newer parks
Difficult access or poor road conditions
Declining tourism or economic activity

Financial Metrics

1. Gross Revenue Calculate from all sources:

Nightly site rentals
Monthly site rentals
Ancillary revenue (laundry, propane, etc.)
Storage fees
Special event income

2. Occupancy Rates Track by season and site type:

Peak season occupancy (target 85-100%)
Shoulder season occupancy
Off-season occupancy
Long-term vs. transient mix

3. Revenue Per Site Annual revenue ÷ Number of sites = Revenue per site Compare to similar parks in the region.

4. Net Operating Income (NOI) Gross revenue minus operating expenses:

Utilities (water, electric, sewer)
Property taxes
Insurance
Repairs and maintenance
Marketing and advertising
Payroll and contract labor
Supplies and amenities
Management fees

5. Cap Rate NOI ÷ Purchase Price = [Capitalization Rate](/blog/calculating-cap-rate-guide) RV parks typically trade at 8-12% cap rates, varying by location, quality, and occupancy stability.

6. Cash-on-Cash Return Annual pre-tax cash flow ÷ Total cash invested = CoC return Target 15-25%+ for RV park investments.

7. Price Per Site Total purchase price ÷ Number of sites = Cost per site Typical ranges: $10,000-$50,000+ per site depending on market and amenities.

Physical Due Diligence

Site Infrastructure:

Electrical pedestals (30-amp, 50-amp service)
Water hook-ups at each site
Sewer connections or dump stations
WiFi coverage and speed
Cable TV hook-ups
Lighting throughout park

Utilities and Systems:

Water supply (municipal, well, or combination)
Septic system capacity and condition
Electrical panel capacity and condition
Propane system (if applicable)
Internet backbone infrastructure

Roads and Pads:

Road surface condition (gravel, asphalt, concrete)
Turning radius for large RVs (45-footers)
Site pad condition and drainage
Pull-through vs. back-in configuration
Leveling quality

Amenities:

Bathhouse/restroom condition
Shower facilities
Laundry room and equipment
Pool or hot tub (if present)
Clubhouse or recreation hall
Playground equipment
Dog park or pet areas
Dump station

Common Areas:

Landscaping and curb appeal
Signage (entrance and directional)
Office or check-in building
Storage buildings or maintenance areas
Fencing and gates

Compliance:

Zoning compliance for RV park use
Health department approvals
Environmental permits
ADA compliance
Building permits for all structures
Capacity limits and certificates

Operational Due Diligence

Revenue Verification:

3+ years of financial statements
Occupancy reports by month/season
Rate schedules and pricing history
Ancillary revenue documentation
Comparison to market rates

Expense Verification:

Utility bills (especially water and electric)
Property tax bills
Insurance policies and costs
Payroll records
Maintenance expense history
Capital expenditure needs

Guest Data:

Guest database and repeat visitor rates
Long-term tenant information
Average length of stay
Guest demographics and sources
Online reviews and reputation

Marketing and Reservations:

Website quality and functionality
Online listing presence (RV park directories)
Reservation system
Social media presence
Repeat guest programs

Operating Strategies for Success

Optimizing Revenue

Dynamic Pricing:

Higher rates for peak season, weekends, holidays
Discounts for extended stays
Premium pricing for premium sites (waterfront, pull-through)
Special event pricing

Occupancy Mix: Ideal long-term vs. transient mix depends on goals:

70% long-term / 30% transient: Stable but lower per-site revenue
30% long-term / 70% transient: Higher revenue but more management
Strategic mix based on market and seasonality

Ancillary Revenue:

WiFi upgrades (premium speed tiers)
Cable TV packages
Laundry services (owned vs. contracted)
Propane sales
Firewood bundles
Convenience items
Equipment rentals (bikes, kayaks, golf carts)

Marketing and Distribution

Online Presence:

Professional website with online booking
Listings on major RV park directories (RV Park Reviews, Good Sam, Campendium)
Google My Business optimization
Social media engagement (Facebook, Instagram)
Email marketing to past guests

Partnership Programs:

Good Sam membership discounts
FMCA partnerships
Military/veteran discounts
Corporate accounts (traveling workers)
Rally and group hosting

Reputation Management:

Monitor and respond to online reviews
Encourage positive reviews from satisfied guests
Address negative feedback promptly
Showcase testimonials

Operational Excellence

Guest Experience:

Efficient check-in process
Clear communication of rules and amenities
Responsive maintenance and support
Clean, well-maintained facilities
Community events and activities (seasonal)

Maintenance Programs:

Regular site inspections and repairs
Preventive maintenance on utilities
Seasonal preparation (winterization, spring opening)
Landscape upkeep
Prompt response to site issues

Staffing Models:

Self-management for small parks (20-40 sites)
Camp hosts (free site in exchange for management)
Part-time staff for seasonal peaks
Full-time managers for larger operations (60+ sites)
Third-party management companies (for absentee owners)

Technology Integration:

Reservation management software
Automated check-in systems
Online payment processing
Guest communication platforms
Maintenance tracking systems

Value-Add Strategies

Infrastructure Improvements

High-ROI Upgrades:

Convert back-in sites to pull-throughs (increases rates 20-30%)
Upgrade electrical service (30-amp to 50-amp)
Install modern WiFi infrastructure
Pave roads and parking pads
Add sewer connections (vs. dump station only)

Amenity Additions:

Build or upgrade bathhouse
Add pool or hot tub
Create dog park
Install playground
Build covered pavilions
Add fire pits or fire rings
Create fishing dock or pond access

Operational Improvements

Revenue Optimization:

Implement dynamic pricing
Increase rates to market levels (many parks underprice)
Add ancillary services
Extend season with winterization
Host special events or rallies

Expense Management:

LED lighting retrofit (major electric savings)
Water conservation measures (low-flow fixtures)
Solar installation for common areas
Self-service check-in (reduce labor)
Negotiate better insurance and supply contracts

Marketing Enhancement:

Professional photography and website
Active social media presence
Improve online booking conversion
Email marketing campaigns to past guests
Partner with local attractions

Expansion Opportunities

Add sites on unused portions of property
Acquire adjacent land
Add glamping units (yurts, cabins) for non-RV guests
Create premium sites with private amenities
Add storage lot for RV storage income

Tax Benefits

Land Improvements Depreciation

Most RV park improvements depreciate over 15 years:

Roads and parking pads
Utility infrastructure
Landscaping
Fencing

Buildings: 39-year depreciation for structures like bathhouses, offices, and clubhouses.

Deductible Expenses

Common deductions include:

Utilities
Repairs and maintenance
Property taxes
Insurance
Payroll and contractor fees
Marketing and advertising
Supplies and inventory
Professional fees
Vehicle expenses for on-site management

[Cost Segregation](/blog/depreciation-real-estate-guide)

Accelerate depreciation by segregating:

Personal property (5-7 years): appliances, furniture, equipment
Land improvements (15 years): most RV park infrastructure
Buildings (39 years): permanent structures

[1031 Exchange](/blog/1031-exchange-guide)

RV parks qualify for 1031 exchanges:

Trade for larger RV parks
Diversify into mobile home parks or other land-based investments
Exchange into different geographic markets
[Defer capital gains](/blog/1031-exchange-vs-opportunity-zones) indefinitely

Industry Trends for 2026

Sustained RV Lifestyle Growth: Younger generations continue embracing RV travel and nomadic living, supporting long-term demand.

Remote Work Integration: RV parks serving "workcampers" and digital nomads with reliable WiFi and long-term sites are in high demand.

Luxury RV Resorts: High-end "glamping" experiences with resort amenities command premium pricing.

Extended Stay Demand: Housing affordability challenges drive more people to RV living as an alternative housing solution.

Technology Expectations: Guests increasingly expect high-speed internet, online booking, and modern amenities.

Sustainability Focus: Solar-powered sites, water conservation, and eco-friendly practices attract environmentally conscious travelers.

Common Mistakes to Avoid

Underestimating Seasonal Impact: Failing to budget for off-season cash flow challenges in seasonal markets.
Neglecting Infrastructure Maintenance: Deferred maintenance on utilities and roads leads to expensive emergency repairs.
Poor Location Selection: Buying a park without attractions, through-traffic, or competitive advantages.
Overbuilding Amenities: Investing in expensive amenities that don't generate sufficient return or guest value.
Weak Reservation Systems: Outdated booking processes lose business to competitors with online booking.
Ignoring Online Reputation: Negative reviews without responses drive guests to competitors.
Underpricing: Many parks charge below market rates due to lack of research or pricing confidence.
Inadequate Due Diligence: Failing to verify utility capacity, environmental issues, or zoning compliance.
Over-reliance on Peak Season: Not developing strategies to extend shoulder seasons or add long-term tenants.
Insufficient Reserves: Not budgeting for infrastructure replacements, weather events, or unexpected repairs.

Is RV Park Investing Right for You?

RV parks suit investors who:

Want strong cash flow with land-based advantages
Can handle moderate operational involvement (or hire management)
Understand hospitality and guest services
See opportunity in outdoor recreation growth
Can evaluate infrastructure and utility systems
Are comfortable with seasonal revenue (or buy in warm climates)
Want to create lifestyle business opportunities
Have adequate capital reserves for maintenance

RV parks may not be ideal for:

Completely passive investors (unless third-party managed)
Those uncomfortable with hospitality operations
Investors lacking capital for potential improvements
Those seeking quick liquidity (RV parks can take time to sell)
Investors in markets with limited tourism or through-traffic

Conclusion

RV park investing offers a compelling combination of strong cash flow, industry growth tailwinds, recession resilience, and land-based operational advantages. The booming RV lifestyle—driven by remote work, affordable travel alternatives, and shifting demographics—creates sustained demand for quality RV parks.

Success in RV park investing requires understanding location dynamics, operational excellence in hospitality, infrastructure management, and creative revenue optimization. While not entirely passive, RV parks offer excellent returns for investors willing to implement professional systems and maintain quality facilities.

Financing through DSCR loans, SBA programs, or seller financing makes RV park investments accessible for qualified investors. The combination of cash flow, value-add potential, tax benefits, and participation in a growing industry makes RV parks an attractive alternative investment for building substantial wealth through real estate.

Whether you're acquiring a small seasonal campground or a year-round destination resort, the fundamentals remain constant: buy in strong locations, operate professionally, maintain infrastructure proactively, and deliver exceptional guest experiences. With proper execution, RV park investing can generate impressive returns while providing personal satisfaction from operating properties in beautiful natural settings.

Investing In Rv Parks

Key Takeaways