New to MHP: Tips for Building a Small Mobile Home Park from Scratch in Rural Eastern

[Damon Reed]

Hey BP community,

I'm an experienced real estate investor (all my current/former properties are single-family and multifamily rentals in Texas), but I'm planning a move to rural eastern Tennessee to be closer to family. My goal is to transition away from active landlording toward more passive income streams.

I'm eyeing building (or possibly buying and expanding) a small mobile home park from scratch—thinking 4-10 pads—where I can live in one unit (or on-site) and rent out the rest for lot rent only. This seems like a great fit: own the land, live there affordably, generate passive cash flow from pad rents, and minimize day-to-day management headaches.

I'm also open to a small RV park as an alternative (or hybrid), especially if it allows easier owner-occupancy and more passivity in rural areas.

Location-wise: Rural spots in eastern TN, like around Chattanooga, Sequatchie Valley, Bradley/Polk counties, or further out—affordable land with good zoning potential.

Since I'm new to MHPs (and RV parks), I'd love insights from anyone who's done something similar, especially in TN:

• -Zoning/Permits for Small Parks: Easier paths for owner-occupied small MHPs or RV parks in rural eastern TN counties? Any counties to target/avoid? Realistic costs and timelines for approvals on 5-10 acres?
• -Building from Scratch vs. Buying Existing: For a small, owner-lived setup, is starting fresh feasible on a budget, or better to find an underperforming park to value-add?
• -Passivity Tips: Strategies to keep it truly hands-off (e.g., self-managed vs. hiring a part-time manager, tenant-owned homes for lower maintenance)? How passive can a small park really be when living on-site?
• -Costs and Numbers: Ballpark for site development on a small scale (pads, septic, electric)? Expected lot rents in rural eastern TN?
• -Local Experiences: Anyone in the Chattanooga/eastern TN area with a small park? Pitfalls or wins with owner-occupancy?

Appreciate any advice, war stories, or resources. Excited to make this move and shift to a more passive setup!

Thanks, 

Damon