RV parks pitched as high-yield asset despite multi-million dollar entry costs

Property investor Pace Morby is highlighting recreational vehicle parks as a highly lucrative, low-management alternative asset class. Speaking recently on the "Iced Coffee Hour" business podcast, Morby stated that individual RV park properties can generate between $30,000 and $40,000 per month in net passive income. This yield is achieved even after accounting for operational expenses and loan repayments.

Morby, who built his reputation in property investment and previously hosted a house flipping show on A&E, described these assets as requiring minimal oversight. He contrasted this ease of maintenance with the heavier demands of managing a traditional apartment portfolio. Because the infrastructure is mostly gravel and an onsite manager handles daily operations, there is virtually nothing to fix.

According to Morby, this specific real estate niche consistently outperforms his other business holdings. He noted that the returns exceed those generated by his car washes, event venues, and standard rental properties. Consequently, he characterized the RV park model as the "only true 'one-and-done' asset" for investors seeking dependable cash flow.

Capital and Financing Hurdles

However, this low operational effort comes with a substantial barrier to entry that limits broad market participation. Acquiring an existing RV park typically requires upfront capital ranging from $3 million to $7 million. This steep price tag places the asset class out of reach for most retail investors and demands significant balance sheet capacity.

To navigate these acquisition costs, Morby utilizes seller financing rather than relying on traditional bank debt. This creative financing structure allows buyers to bypass conventional lending hurdles and secure the property directly. Executing this strategy requires finding property owners with the financial flexibility and willingness to carry the note.

For high-net-worth individuals, the appeal of such alternative real estate lies in its potential insulation from broader market volatility. The physical nature of the asset also renders it largely immune to technological disruption. Nevertheless, the heavy reliance on seller financing and the inherent illiquidity of the asset mean it remains a niche strategy.

Market professionals should view these return claims with an understanding of the specific conditions required to replicate them. While the income potential is notable, the success of the model hinges entirely on favorable seller financing terms and competent onsite management. Without those specific variables, the capital-intensive nature of the investment carries considerable risk.