July 13, 2007, Part I: Park Model Expose—All You Ever Wanted to Know

 

We have already had numerous inquiries about our park model and I thought it would be helpful if we started a journal entry of the process we are going through from purchase to setup. This will be the first in a series that will transpire over the next few months.

We first gave thought to the idea of purchasing a park model last fall when we realized we would more than likely be back in Oregon for the foreseeable future. Due to my parents’ increasing health concerns we deemed it important for us to have projects in Oregon so that I could be much closer in the event of an emergency and to help them out. Also you can gain further background into our thinking by reading the April journal entry of Fulltiming Practicalities. The long and short of it is that we hope to gain a vacation home at the coast short term and another abode for retirement, long term. Oregon coast property is expensive; this is frankly, a cheap alternative that puts us on the same beach as the people who pay a $2000/mo mortgage. Our RV space rent will be $300/month on an annually paid basis. That includes water, sewer, garbage, WIFI and cable TV and is about 300 yards to the beach across the street!

 

I did a lot of research online and via phone calls to different dealers and then we started visiting dealerships in Wisconsin. Park models are primarily made in IN, in AZ, TX, and GA. There is also one manufacturer in WA which is quite popular in the PNW. There seems to be wide divergence in the quality aspects, much like with any RV product with the exception that none of them are ultra high end. Typical standards include vinyl and carpeted flooring, laminate countertops, a minimum of insulation and vinyl or wood siding with asphalt or metal roof. Most will come complete with an RV propane heater and six gallon gas water heater if you don’t upgrade. You also have the option of having RV holding tanks, although this isn’t typically done since for the most part, park models stay put once placed. They also come complete with appliances and window furnishings and many also feature scaled down RV type furniture if wanted. Sometimes this is a standard and sometimes an option.

All manufacturers stress in their literature that they are not meant as fulltime residences but in the real world they are frequently used as such. Currently by law they are under RV regulations, which preclude them from being larger than 400 square feet with the exception of in Florida. Ours sits on a 40 foot frame of which the living space occupies 34 feet. Newer park models are not your Grandma’s old trailer however—ours is 11.5 feet wide and boasts a 10 foot interior ceiling with enough window light to dazzle your eyes on bright or cloudy days.

Interior construction is of two types: either wallboard (vinyl wrapped) or sheetrock. We found the problem with the sheetrock units is that it is very thin and has problems with cracking, not only during transport but also after setup. Since this wasn’t appealing to us, we opted for wallboard. We chose a manufacturer, Dutch Park that is willing to customize its base floor plans—we added several standard options like the dormer clerestory windows along the entire length of both sides (+$3520) but we also eliminated the back door to a wall closet the specific size to house a full-size stack washer and dryer. We left out the sliding glass door and opted for a single front French door instead. We had the dryer plumbed for gas (+$225). We also opted for the optional 30" electrical stove (24" gas was standard) (+$115) which necessitated them building our pantry 18" wide rather than 24". Pull out shelving on the pantry was a well-worthwhile option (+$165) as was the real oak cabinets rather than the standard vinyl wrap over veneer common in most park models (+$1590). We also had them build the largest front porch they could accommodate, which was only six feet (+$980). Other manufacturers can offer up to 12’ porches. Things that are typical options are things like pocket doors, Moen fixtures, upgraded insulation, and various window configurations. Base price of our unit was $35,085. We found that it would be very easy to add substantially to the price by adding upgrades and options so watch out!

We dealt with a wonderful old-timer by the name of Shorty at Janesville North RV near Madison and felt he gave us great service and a great price. We also picked the best time of year to deal on an RV: the middle of a WI winter when there was about a foot of snow on the ground and the temps were hovering near 10 degrees. Needless to say, we were the only ones on the lot that day and likely his only candidate for a sale but it was great that he had so many models in stock to look at. Shorty got back to us within a few days on what they could do bottom dollar on price, which we wanted to also include shipping. The deal was struck at a total of $45,000 which did include the $6800 price tag to have it towed from the factory in Goshen to Bend, OR. The deal price also included $8330 worth of options. In our research we found prices varying from a low of about $25,000 for a very small, very basic park model to well into the $80,000 range for someone wanting Corian countertops and stainless appliances. Generally however, I would say our park model falls into the average range that most folks seem to pay. We knew we didn’t want ours delivered before we made it back to Bend ourselves but typical build time on a custom job is about 8 weeks.

       

Park models are in demand. Here in the west, other than in the Arizona desert, they are not as prevalent but they are extremely popular for use as lake cabins in the northern Midwest and east. Many resorts are starting to use them as motel rooms. Our WI dealer sells over 240 of them a year. I think the trend is that once they are placed, especially if they are in a desired location, they do not lose to depreciation the way a normal RV does; they seem to hold or even gain value. It stands to reason—they are only making so many parks where they can go and once those spots are taken, they’re gone.

Financing a park model is like financing an RV with the exception of a required down payment; a typical interest rate is higher than a mortgage and the maximum term is 15 years. Given our economic times, they prefer to see 20% down but will settle for 10% with extremely good credit. There are not a lot of lenders who do park model loans however, so be aware of that. Our credit union was unable to help us out so Shorty had to shop through several possibilities to find us an acceptable interest rate. Insurance was easy for us to obtain through Foremost and once it is permanently set in Coos Bay in the park the rate will drop to below $300/year. It runs higher if they are placed on private property for some reason.

OUR LOCATION OF CHOICE

Readers of these pages may recall several years ago that we spent about a year along the Oregon coast in an area at Winchester Bay and Coos Bay. In Coos Bay we got into Phase 2, newly built, of Midway RV Park and immensely enjoyed our stay. When thoughts turned to where we would place the park model on a permanent basis there was no contest. It only needed a phone call to the owner Mike to confirm that yes; he will allow a few park models and would welcome us back. The downside: he was full for the season and it would be quite a wait until November 2007. Fortuitously for us, when we paid them a personal visit recently we arranged not only for a better site (now in Phase 3) but one available much sooner. Our baby will be moving again on September 12th. Currently a toy-hauler sits in her spot but you can see the generous space—the fact it is an end spot—and the nice greenbelt next to us so no close neighbor on either side. We’re thrilled with this choice spot!

   

Until September we are spending some time in making improvements. We sold the standard stove the unit came with and have installed a top of the line smooth top drop-in unit. This requires my son to make us a drawer to go underneath (he works in a cabinet shop). Inadvertently, the refrigerator was left out of our unit so we need to buy one but that’s ok because I wanted a better grade (& bottom freezer) anyway (the company is sending us a check). I elected to leave off all factory window furnishings and have installed white roller shades and custom made valances to go with my "beachy" décor, all done in blues, turquoise and white. My brother has helped me paint vintage cottage furniture in white. It’s been great fun getting it all decorated to my liking although it will soon be packed up again for transport.

       

       

Next we’ll report on the actual move to Coos Bay and what’s entailed in the setup process so check back with us in late September for more on that. As always, if anyone has questions please don’t hesitate to email us.



 

Hit Counter