As the world gets back to a new normal after the Covid-19 pandemic, vacation spots have never been in higher demand: people want to expand their frontiers and relax after the stress of the pandemic. More importantly, many want to disconnect from the outside world, and they’re seeking scenic locations where their everyday lives seem far away.
Virginia is one of the most show-stopping states in the US, with majestic mountains and miles of unspoiled wilderness, which means it’s an excellent place to develop vacation properties. Especially in today’s world, investing in vacation rentals is a way to diversify your portfolio at a much lower risk than more traditional investments like apartment complexes – and park model cabins are an even safer bet. Let’s explore the reasons why park model cabins are the perfect way to start a vacation rental business in lovely Virginia.
Park model cabins are highly affordable for investors
Virginia is a wonderful opportunity for investors, as it’s home to a wealth of outdoor recreation activities – and park model cabins fit the rugged wilderness aesthetic that many vacationers seek. These timber structures look rustic, but they contain all the modern conveniences that any traveler wants, like showers, kitchenettes, and electricity. For those who want to feel outdoorsy but don’t want to lie on the hard ground in a tent, park model cabins are the perfect solution.
On the investment side, park model cabins are sturdy structures at a low cost. Most park model cabins cost between $40,000 and $50,000 – much cheaper than buying or building a traditional home. In addition, they come preassembled, which means you don’t need to worry about finding, hiring, and supervising contractors as they build your property. The cabin will come ready to be hooked up to utilities, and all you must do is show them where to place it and where to connect it to electricity, water, and sewer. It simply couldn’t be easier to get started.
With its low cost, you’re guaranteed to make back your money with lightning speed. If you rent the property for $200 a night, 300 nights out of the year, you’ll have entirely recouped the initial investment of the cabin within a single year – much faster than if you’d purchased a prebuilt single-household home.
As park model cabins are legally classed as RVs, their taxes are much lower
Here’s another perk of park model cabins: as they’re not built on a cement foundation, they aren’t classified as a permanent structure. Under the Virginia tax code, recreational vehicles and campers are classified as “tangible personal property,” and localities are authorized to tax them at a reduced rate. In other words, since park model cabins are classed with vehicles and therefore personal property, they’re typically exempt from the same property taxes applied to buildings. This can save you thousands of dollars each year per property.
On that same note, because of the way that park model cabins are constructed, they can be relocated just as a mobile home could be; this means that if you decide to sell the property on which you’ve placed your park model cabins, you can easily move them to a new property at any time.
Park model cabins are built to last, meaning they will retain their value for years to come
Newer homes often don’t have the staying power of their older peers thanks to their construction, and as such they require costly repairs much sooner. This means you’ll start paying for costly repairs within a decade or less, and that can really damage your bottom line.
By contrast, park model cabins have incredible durability and can last up to 50 years or more. Since they’re built of full timber, they can withstand even the most extreme weather without a scratch.
Every square foot of house adds a few more problems, as there are more issues that can crop up at any time; since park model cabins are very compact, they’re incredibly efficient, and any repairs they need will be much smaller than their more spacious compatriots. It’s unlikely you’ll have to perform maintenance on any of these properties for decades, which greatly boosts your return on investment.
With so many consumers seeking relaxing vacation spots after the Covid-19 pandemic, it’s never been a better time to invest in vacation rental properties. The entry cost is much smaller than other forms of property investment, and it’s a safer bet than purchasing an apartment complex or single-family home.
Park model cabins are the obvious choice for those wishing to jump into the vacation rental game, as they are inexpensive, durable, and have a lower tax rate than permanent structures. This is your sign to develop a powerful real estate portfolio by investing in park model cabins in Virginia, a gorgeous state known for its scenic views and warm people.