The Investment Case

Why RV parks attract serious investors right now

RV park investing has grown from a niche hobby into a legitimate asset class. That shift has been driven by a few things happening at once: RV ownership hitting record highs, a shortage of new campground development, institutional buyers moving into the space, and a generation of independent park owners approaching retirement age with no succession plan.

That last point matters. The majority of RV parks in the United States are owned by individuals or families who have operated them for decades. Many have no children interested in taking over, no broker relationship, and no clear exit strategy. That creates a buyer's market for anyone willing to do the work of finding them.

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Supply constraint

Zoning restrictions make new RV park development difficult in most markets. Existing parks are increasingly hard to replace, which protects your investment from new competition.

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Favorable cap rates

RV parks typically trade at 7 to 11% cap rates — meaningfully higher than multifamily at 4 to 6% in most markets. More income per dollar of purchase price.

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Low tenant improvement costs

Tenants bring their own units. No appliances, no carpeting, no unit turnover renovation. Maintenance costs run low compared to residential or retail.

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Recession resilience

RV travel tends to hold up in downturns — it's cheaper than hotels and flights. Parks near affordable camping attract consistent demand regardless of broader economic conditions.

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Land value upside

Many parks sit on significant land in locations that have appreciated considerably since purchase. The park operation is the income — the land is the insurance policy.

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Value-add opportunities

Undermanaged parks with below-market rates and underutilized sites are common. Small operational improvements can drive significant NOI growth in the first 12 to 24 months.

The honest counterpoint: RV parks are operationally intensive compared to triple-net commercial properties. You're dealing with guests, reviews, reservation systems, infrastructure maintenance, and in some states, tenant rights regulations that apply to long-term residents. Know what you're buying before you buy it.

Know What You're Buying

The four types of RV parks — and which fits your situation

Not all RV parks work the same way. The type of park determines the risk profile, the operational demands, the cap rate you'll pay, and how you'll manage it. Getting clear on this before you start looking saves a lot of time.

Park Type How It Works Cap Rate Range Best For
Transient / overnight Short stays, nightly or weekly rates, high turnover. Revenue is seasonal and weather-dependent in most markets. 8.5% – 11% Experienced
Destination resort Near a lake, national park, or tourist draw. Higher nightly rates, amenities-heavy, strong brand matters. Competitive to acquire. 6% – 8.5% Advanced
Long-term / resident Monthly rates, more stable income, lower turnover. May include tenant rights obligations in some states. Easier to manage remotely. 8% – 10% First-time
Mixed transient and long-term Some sites are monthly, some are nightly. Blended income stream with more stability than pure transient. Most common park type. 8% – 10.5% First-time

First-time buyers often do well with long-term resident parks or mixed parks. The income is more predictable, management is simpler, and the asset is easier to underwrite. Destination resorts look attractive on paper but the operational complexity and acquisition competition make them harder starting points.

Step by Step

The buying process from first look to closed deal

1

Define your buy box before you look at a single deal

The biggest time-waster in this business is chasing deals that don't fit your situation. Before you talk to a broker or submit a letter of intent, get clear on your geography, budget, park type preference, minimum cap rate, and how much operational involvement you're willing to take on.

Write it down. "I'm looking for a 25 to 75 site mixed-use park in the Southeast, priced $750K to $2M, cap rate 8.5% or better, within 90 minutes of a major metro." That specificity saves you from wasting time on deals that aren't right and makes you more credible to sellers and brokers who work with serious buyers.

⚠ Skip this step and you'll spend 6 months looking at the wrong deals
2

Get your financing roughly figured out

You don't need a commitment letter before you start looking, but you need to know roughly how you'd finance a deal. SBA 7(a) loans are the most common path for parks under $5M — they allow up to 90% LTV with a 25-year amortization, which makes the cash-on-cash math attractive. Conventional commercial loans typically require 25 to 35% down. Seller financing is available on some deals and can dramatically improve your returns.

Talk to a lender who has done RV park loans before you make your first offer. Parks with septic systems, wells, or compliance issues can complicate financing — knowing your lender's constraints upfront keeps you from killing deals in underwriting.

Read the full financing guide →
3

Source deals — off-market first, broker listings second

The best RV park deals don't come from LoopNet. They come from owners who are ready to sell but haven't listed yet. Direct outreach to park owners, referral networks, and private buyer databases produce better deals with less competition than anything on the open market.

That doesn't mean broker listings are worthless. It means off-market should be your primary channel and broker listings should be your supplement. We cover both approaches in the sourcing section below.

4

Underwrite before you get excited

When a deal looks good, the temptation is to start imagining what you'll do with it. Don't. Before you make an offer, build a simple underwriting model: confirm the revenue from actual bank statements or tax returns (not the seller's pro forma), calculate expenses at market rates rather than what the seller claims, derive the NOI, apply your target cap rate, and back into a price.

Most RV parks are owner-operated, which means expenses are often understated because the owner's labor isn't priced in. If you plan to hire a manager, add $40,000 to $80,000 per year in operating costs before you get to your number.

📋 Always underwrite to actual revenue, not seller's projections
5

Make an offer and negotiate terms

Your first offer should be a Letter of Intent — a short non-binding document that outlines your proposed price, deposit, due diligence period, financing contingency, and closing timeline. Keep it simple. A 2 to 3 page LOI is plenty.

Price is only one negotiating lever. Earnest money amount, due diligence period length, financing contingency terms, and closing timeline all matter to a seller in different ways. Sometimes a seller will take a slightly lower price in exchange for a faster close or a larger earnest deposit that signals commitment.

6

Due diligence — this is where deals die or get repriced

Once you're under contract, you have a fixed window — typically 30 to 60 days — to verify everything the seller told you. This is your last chance to walk away or renegotiate without losing your earnest money. Use it fully.

See the full due diligence checklist below. The short version: verify the financials against source documents, inspect all infrastructure personally or hire someone who will, review every permit and license, and talk to the manager and at least a handful of long-term guests before you close.

7

Close and transition ownership carefully

The 30 days after closing are as important as the 30 days before. Introduce yourself to long-term residents and staff early. Don't make dramatic operational changes in the first 90 days. Understand the reservation calendar before you touch anything. The goodwill of existing guests is a real asset — it takes years to build and days to damage.

🌟 The best first-year move is listening, not changing

What the Numbers Should Show

Key metrics to verify during due diligence

Every RV park deal comes down to a handful of numbers. Here are the benchmarks that tell you whether what the seller is claiming holds up under scrutiny.

Expense ratio

35% – 50%

Well-run parks land in this range. Below 30% usually means owner labor isn't priced in. Above 55% signals management problems worth investigating.

Occupancy rate

55% – 80%

Healthy stabilized parks run 55% to 80% depending on type and season. Consistent occupancy over 3 years is more meaningful than a single strong year.

Revenue per site per year

$3K – $12K

Wide range depending on nightly vs. monthly rates and season length. Compare against actual reservation records, not the seller's estimate.

Debt service coverage

1.25x minimum

NOI divided by annual debt service. Most lenders require 1.25x minimum. If your underwritten NOI doesn't clear this, the deal doesn't finance at the price you're paying.