RV Park, Glamping & Campground Operation SBA 7(a) buy-vs-build cash-flow calculator
Stress-test building an RV park, glamping & campground operation from scratch against acquiring an existing cash-flowing resale using SBA 7(a) financing. Adjust startup CapEx, revenue, owner SDE margin, acquisition multiple, and loan terms to compare Year-1 ramp-up cash flow, Debt Service Coverage Ratio (DSCR), and 3-year cumulative owner take-home.
SBA 7(a) underwriting & payback takeaway:
At $850,000 revenue and 47% SDE margin ($399,500/yr pre-debt cash flow), buying an existing RV park, glamping & campground operation at 7.0× SDE ($2,796,500) generates $14,607/yr from Day 1 (1.04× DSCR), giving an immediate $142,606 Year-1 cash-flow advantage over building from scratch during a 18-month ramp-up. Once ramped in Year 2+, building from scratch ($930,000 CapEx) nets $271,501/yr (3.12× DSCR). By comparison, a 8% gross-sales franchise royalty on $850,000 revenue deducts $68,000/yr directly from owner cash flow.
Frequently asked questions about starting or buying an RV park, glamping & campground operation
How much does it cost to start an RV park, glamping & campground operation?
Starting an independent RV park, glamping & campground operation typically requires $400,000–$1,450,000 (SBA 7(a)/504 down payment + park upgrades on a 25–80 pad park (or phase-1 land development)). The largest line-item startup expenses are Property Acquisition Down Payment or Land Grading & Gravel/Concrete Pads ($180,000–$600,000), Underground 30/50-Amp Electrical Pedestals, Water & Septic/Sewer Infrastructure ($110,000–$420,000), Park-Model Cabins / Glamping Yurts & Recreation Amenities ($40,000–$180,000). Founders should budget for both initial buildout/equipment CapEx and 12–24 months of working capital runway.
How much do RV park, glamping & campground operation owners make and what is a healthy profit margin?
Established RV park, glamping & campground operation operators generate $320,000–$1,400,000 in annual gross revenue (Nightly/monthly pad rent (75%), glamping cabins (15%), metered electric pass-through, laundry & camp store (10%)) with an owner cash flow of 38%–55% SDE margin (Low housekeeping labor compared to motels; work-camper couples often staff front desk in exchange for a free pad). Key operating ratios include Camp Store Merchandise, Propane Refills & Firewood COGS: 4%–8% of revenue; On-Site Management, Groundskeeping & Work-Camper Payroll: 14%–22% of revenue; Utilities (Water, Trash, Wi-Fi & Net Unreimbursed Electric): 10%–15% of revenue. Remember that gross revenue is top-line sales before payroll, COGS, and occupancy—not net owner take-home pay.
How is an RV park, glamping & campground operation valued when buying or selling an existing business?
Operating RV park, glamping & campground operation resales typically trade at 5.5x–8.5x SDE (Valued on Net Operating Income (NOI) cap rates (7%–10% cap rate) including land and infrastructure), translating to typical acquisition prices of 5.5x–8.5x SDE ($669,000–$6,545,000). Key buyer due-diligence priorities: Inspect wastewater infrastructure (municipal sewer connection vs. septic leach field capacity and DEQ permits). Verify electrical pedestal amperage (50-amp capacity across pads) and whether monthly sites are sub-metered.
Is it better to start an independent RV park, glamping & campground operation or buy a franchise?
An independent RV park, glamping & campground operation costs $400,000–$1,450,000 to launch and pays 0% ongoing royalties, whereas comparable franchise systems (Comfort Inn, Quality Inn, Super 8, Days Inn) require $108,795–$41,181,010 in disclosed Item 7 opening investment plus 8% of Gross Registration Revenue + 2% marketing (e.g., KOA). Franchising provides brand playbooks and vendor programs, while independent ownership preserves full margin control and exit flexibility.