In Progress

LESSON 1 β€” UNDERSTANDING THE BIG FOUR: WATER, SEWER, ELECTRIC, AND ROADS

These four items determine:

  • The park’s current value
  • Future expansion
  • Maintenance costs
  • Whether lenders will finance the park
  • What upgrades are needed

Here’s how each works:

1. Water System

Your water system may be:

  • City water (easiest & preferred)
  • Well water (common in rural parks)

Buyers must consider:

  • Water pressure
  • Age of the well pump
  • Water line material (PVC, galvanized, poly, HDPE)
  • Known breaks or leaks
  • Testing requirements (weekly, monthly, annual depending on system classification)
  • Winterization
  • Backup systems

🚨 Red flags:

  • Low pressure
  • Repeated line breaks
  • Galvanized pipes
  • Undocumented well maintenance
  • No frost-free hydrants in cold climates
  • No isolation valves

2. Sewer / Wastewater System

Most complicated part of a campground.

Types:

  • City sewer (best)
  • Septic systems (most common)
  • Multiple septic fields
  • Wastewater treatment plants (more complex)
  • Holding tanks (high cost)
  • Lagoon systems (older parks)

Buyers need to know:

  • Size and capacity
  • Age of tanks & fields
  • Pump replacement history
  • If tanks are steel (bad), concrete (good), plastic (okay)
  • Code compliance
  • Future replacement timeline

🚨 Expensive risks:

  • Drain field failure (can be $50k–$300k+)
  • Tanks collapsing
  • Illegal hookups
  • Combined grey/black lines
  • No accurate map of where systems are located

3. Electrical System

Buyers MUST understand electrical because it is one of the highest upgrade costs.

Key questions:

  • Is the whole park 30 amp? 50 amp? Both?
  • How many sites share each transformer?
  • Wiring type?
  • Age of pedestals?
  • Condition of breakers?
  • Is electrical properly grounded?

🚨 Costs buyers never expect:

  • Upgrading to 50 amp can cost $2,500–$5,000 per site
  • Transformer upgrades cost $10,000–$40,000 each
  • Underground line replacement can exceed $100,000
  • Miswired pedestals can cause fires

Electrical determines:

  • Whether big rigs stay
  • Whether monthly guests overload lines
  • Whether you can raise rates
  • Expansion capability

4. Roads & Infrastructure

Roads matter more than buyers think. Bad roads = bad reviews.

Types:

  • Gravel roads (most common)
  • Dirt roads (low-cost parks)
  • Chip & seal
  • Asphalt

Costs buyers underestimate:

Paving roads: $100k–$400k

New gravel each year: $5k–$30k

Full grade + gravel: $30k–$150k