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I think we have been lucky enough to stumble onto a good thing here, in that the park we are at are mostly interested in long term tenants in the vans, All 3 of the vans are rented at $200 p/w at the moment by long term people. The land is currently owned by investors who have no short term plans for the area we are in. I am happy with our results so far, but this is not something I would pursue at another park, I can see too many pitfalls, and you don't have a lot of controll even when you are keeping in close contact with the park managers
What do you know, I was going throught the paper looking for deals of interest (rental value divided by two then times by 1000) I saw a van for sale for $55,000. Instead of contacting the real estate agent I rang the park to get real numbers (as i don't want to live in the van) He quietly mentioned that there are cheaper options that bring in the same returns.
I guess the best way to get onto this would be to go to parks and see if they are interested in selling vans as I think they normally sell them to regular visitors or permanent residents, they don't get advertised very often. My only advice would be consider staying in a park for a weekend first before you make any enquiries.
look for noise, drugs, how they deal with bad behavior, and find out from the visitors how much they are paying.
Very interesting, I will give feedback on how this pans out
We are looking at this opportunity for cashflow only, not capital gains. We have been in and chatted with residents (long and short term) and had great feedback. The park is consistantly full due to workers who need to stay in the area (we have a lot of mine workers, truckies and fruit pickers)
The going rate for rent in the park is $200 p/w. We are looking at 3 vans for $9000 so after site fees and power water we will have approx $300 p/w left over. Without vacancy we would pay off the principal in approx 71/2 months. So within 12 months we could potentially have a cashflow of $300 p/w
