RV Park Profile: Shyrock RV Park
This article will dig into the details on Shyrock RV Park near Superior, Montana, so that we can see these ideas about RV Parks and Tiny Home Communities in action. Shyrock is a fascinating park, that is a great illustration of the potential of RV Parks, and how you could profit by over $15 million on a single RV Park.
Shyrock RV Park is located 70 miles East of Missoula, near I-90, just off the frontage road. They currently have 100 lots, and are building another 200 lots as we speak. These lots are sold out, they are selling them as fast as they can build them. There is a high quality clubhouse, with lots of real stone, a large fireplace, laundry facilities, big screen TV, a gym, an office, and a commercial grade kitchen. In addition, there is a large pool, horseshoe pits, and they are building pickleball courts. One of the more unique aspects of this property is that the spots are only available for six months out of the year. The park closes down during the winter. This is a large limitation on their profitability, as it disqualifies residential living as an option. Instead of targeting people of who need housing, their target market is vacationers who want a dedicated RV spot to themself.
In total, Shyrock is using at least 150 acres for their park, because their lots range from 0.29 to 0.50 Acres. The narrowest lots are 80 ft wide. This allows people to build an outdoor gazebo, and 350 sq ft storage sheds. Shyrock allow washer and dryers to be placed in the storage sheds. Some people have finished the sheds so it’s an office or laundry area. The county does not allow them to be used as bedrooms.
Shyrock charges a $600 HOA fee per year, which covers water, garbage, and sewer. Electric is sub-metered, and charged separately. Another profit source for Shyrock is a contract with Woodland Park. Roughly 10-20% of the lots have a Woodland Park tiny house on them (See picture below). These homes are attractive and blend in nicely with the landscape, resulting in a win-win for residents and the owners. One potential alternative for the owners would be to buy these tiny houses themselves, and rent them out to tenants. There is a serious housing shortage in the area, and the rent could be fairly low, while still resulting in a profit for the owners. However, the fact that the park is only open for six months of the year is the main limitation on this income source.
Shyrock’s main marketing method appears to be Youtube, where they have a few interviews and videos. It appears that they have coordinated with RV Youtubers that have tens of thousands of followers. It’s also clear that this has worked. Google reviews show that they’re getting far more interest than they can handle, as their lots are consistently sold out. They’ve seen overwhelming demand for the lots, and have pre-sold most of them.
Shyrock has worked hard to ensure that the quality of RVs and Tiny Homes is high. The HOA only allows Class A motorhomes, 5th wheels, Super C motorhomes, and park model homes. RV’s staying in the park must be in “Like New” condition. No pop up trailers, no blue tarps covering stuff, no broken down cars. The HOA restricts the colors of sheds, placement of outdoor kitchens and gazebos. You are allowed to sublease your lot once per month (Ex. Rent it out to a friend or tenant for one week, then you need to wait 30 days until you can rent it again. You are allowed to rent it out for 6 months at a time). They are explicit about not being a campground, temporary stays are not something they offer.
There are additional methods that the owners use to make sure the park stays in appealing condition. Four different types of fences are allowed. Four feet tall is the maximum. This allows dogs to be fenced in if the owner has one. Many owners own “side-by-sides”, which they take for shorter trips like getting groceries, and going exploring on back roads. All of the roads are asphalt, so there are no dirt roads that kick up dust. They have four “Temporary stay spots” reserved for potential buyers. They can stay for 2-3 days for free, and check out the park for a potential purchase.
Shyrock focuses exclusively on selling lots, and does not do any renting. The price of these spots range from $125K for a quarter acre, to spots 0.7 acres that are well over $200K. Recently, these lots have been selling for between $125-200K, resulting in a gross profit of over $40 million. I do not have specific development numbers from the owner, but we can make some rough estimates based on current building prices. The clubhouse likely cost around $1.2 million based on the square footage and quality, and the pool and outdoor amenities cost around $100K. For the lots themselves, a conservative estimate is that they paid $50K per lot to put in underground utilities, as well as build a large septic system to service all of the spots. If we assume the land is worth roughly $2 million, then the total cost of development is in the ballpark of $18.3 million. Let’s round up to $25 million to stay ultra conservative, and include miscellaneous costs like financing and entitlement costs. This results in roughly $15 million of profit, which is a pretty substantial profit margin.
This real-world example is a clear demonstration of the profit potential of this kind of RV Park. There is large demand for these kind of lots, even if they are only open for 6 months of the year. If the lots were open year-round, they would be worth even more. I hope this example has opened your eyes to the profit potential of this kind of RV Park, I will examine more in the coming months to show their potential.
Building RV Parks that are essentially Tiny Home Communities are a win-win-win solution for our investors, our communities, and our residents. These lots can be occupied by Tiny Homes, Park Models, or RVs, giving our buyers a variety of options. Better yet, we can choose to sell or rent the lots, to match the current demand in the market. Tiny homes are an exciting and innovative way to live a simpler, more sustainable lifestyle. They offer many benefits, including cost savings, energy efficiency, and flexibility. By learning more about this new trend in housing, we can ensure that this movement results in more affordable housing and profits for investors.
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