Having your own rental space may be something you’ve dreamed about for years. But getting into real estate doesn’t always mean buying a full-sized home. A park model tiny home can offer another way to create a dedicated rental space without the size and scope of a modular house.
It might sound too good to be true, but the idea is pretty simple. With the right property, planning, and rental strategy, a park model can become a comfortable place for guests while giving you an opportunity to generate income from your investment. The key is having a clear plan and knowing what it takes to make the numbers work.
Do park model tiny homes make a quick return on investment?
Yes, park model tiny homes offer a relatively quick return on investment when compared to full-sized homes. Unlike full-sized homes, you won’t have massive foundational work, extensive permitting, or large electrical needs. In fact, many people use these on their personal residential property in a secluded area, allowing them to tie into the existing infrastructure.
On the other hand, many investors find these to be an appealing balance of space, quality, and cost. They fill a unique niche between what feels like a “real home” with the affordability and flexibility of an RV. Often referred to as “cabin camping,” these units are a great way to generate a quick return on investment when mixed in with other campground amenities, as you can see at places like Red Run Resort or Big Texan RV Park.
What Makes Park Model Tiny Give You a Faster Cash-on-Cash Return?
No Need For A Foundation
Unlike a standard home or cabin, our Park Model Cabins don’t require a full basement or crawl space. Simply place your cabin on a stone pad, hook up your utilities, and you’re ready to turn a profit.
Also, because you don’t have a permanent foundation, you have the ability to move your cabin at any time.
This will, of course, take more effort than a normal RV, but it is possible. In most cases, you will need a permit to move it. We recommend hiring a professional to ensure your cabin is handled properly and that all local state laws and regulations are met during transportation.
Find out more about park model home building standards here.
Faster Return
A faster setup can also mean you can start generating rental income sooner. In the right situation, you could have your park model delivered on Friday morning, spend the weekend getting the space set up and staged, and have it listed for guests by Monday morning.
Of course, creating the finished look you want may take a little longer. You may want to add furniture, outdoor spaces, landscaping, décor, and other touches over time. But the key is that you can start with a finished home and continue improving the guest experience as your rental grows, rather than waiting weeks or months for construction to be completed.
Strong Record Of Return
As we mentioned earlier, we have the ability to help you get a better idea of what park model returns could look like for you. We have to ways of offering you help in this area. Proposed pro formas and a short-term investment calculator.
The pro forma calculations can help you understand what a rental market will look like in a specific area. For example, if you are trying to understand what the income could look like in Jackson Hole, WY, we have data to help you understand what the rental market is like in that area.
The other is an investment calculator. What this tool will do is help you understand how long it will take you to get your cash investment and begin making a profit.
Park Model Pro Forma And ROI In Pigeon Forge, TN
Park Model Pro Forma and ROI in Durango, CO
Park Model Pro Forma and ROI in Sedona, AZ
Park Model Pro Forma and ROI in Jackson Hole, WY
Are Park Models Tiny Homes An Affordable Investment?
Yes. Compared with many other short-term rental options, park model tiny homes can be an affordable way to get started. They give you the opportunity to create a comfortable, memorable rental experience without taking on the cost of building a full-size home. For owners looking to create a more elevated or luxury stay, a well-designed park model can offer a lot of potential in a smaller footprint.
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Are Park Model Cabins Built to be a Turn Key Investment?
Yes! When your park model tiny home arrives at your site, the home itself is complete inside and out, giving you a finished space that is ready to be set up and enjoyed. You will still need to take care of leveling, skirting, and utility connections, but the cabin arrives ready for the final steps.
Our park models come equipped with appliances and a mini-split heating and cooling system, so your guests can stay comfortable throughout the seasons. Once your tiny home arrives, you can begin furnishing the space to create the kind of memorable, elevated stay you have in mind.
Instead of waiting months for a traditional build to come together, you can have a finished rental space ready to start preparing for guests in a matter of days.
Still not sure what this could look like for your property? Take a look at the video above featuring Andrew Rosenberg, managing partner of Big Texan RV Park, and see how he is using park model homes to create a unique guest experience.
Are Park Model Tiny Homes are Fully Certified?
One of the frustrating points of having a new home built is going through all of the processes of the Yes! We build every park model to RVIA certification and to applicable ANSI A119.5 standards. Your unit will arrive with an RVIA seal and VIN number, giving you the documentation that comes with a certified park model RV.
It is one of the key differences between a park model RV and a traditional site-built cabin or tiny home, and it gives you peace of mind knowing your unit was built to the appropriate standards from the start.
How do I prepare for a Park Model Tiny Home?
Park model tiny homes require minimal site preparation. Simply have a 4- to 6-inch level gravel pad or concrete slab in place. Make sure you have an electrician and a plumber set up your connection points, and you’re off to the races.
For a more in-depth understanding, you can watch the video above or read our article, “15 Steps to Setting Up a Park Model Tiny Home.”
Do Park Model Homes Hold Their Value Like Other Short-Term Rentals?
From a rental perspective, a well-maintained park model can continue to provide a strong guest experience for years, helping you maintain the appeal of your stay over time. But when it comes to resale value, comparing a park model to a traditional short-term rental property is a little more complicated.
The biggest difference comes down to how the property is classified. Park models are classified as RVs, while many traditional short-term rentals are real estate tied to the land they sit on. That means the value of a park model and the value of a traditional rental property can be influenced by very different factors, including the land, location, and how the property is classified.
Are Park Models A Good Investment?
Generally speaking, a park model can be an attractive investment, especially for those looking to create a short-term rental without taking on the cost of a traditional property. And if your plans change down the road, you have another option that traditional real estate may not offer: selling the unit separately from the land.
Because park models are built on a chassis with wheels, they can be sold and relocated independently of the property they are currently sitting on, subject to applicable regulations and requirements. That gives you more flexibility if you decide the investment is no longer the right fit for you.
Can I Finance A Park Model Home?
Yes, park model tiny homes can be financed. However since they aren’t approved as a permanent residence, they can not be financed on a traditional mortgage system. If you have questions about how a park model tiny home can be financed, request a quote. One of our park model sales reps would be able to help you determine what financing options would be best to fit your needs.
However, off the cuff, we have seen many people have success in financing their park model tiny home by a personal loan or using a company’s offering a chattel mortgage, which is a little-known finance option for a Park Model Home or any movable property.
Going From Here…
So now the decision is yours. Is a short-term, high-return turnkey investment property in your sights? Request a quote or contact us to see how we can help you with your new Park Model Cabin, or see our other cabin options and watch the profits start to roll in.