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

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

Damon Reed
Rental Property Investor · Dunlap, TN · Member since 2016 · 8 posts · 7 votes

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

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Jordan MoorheadBusiness Member
Real Estate Agent · Austin, TX · Member since 2015 · 5k+ posts · 3k+ votes
9mo

Buy existing. Building is incredibly difficult and expensive. Small parks are relatively easy to find too as lots of people don't want them.

[email protected]512-888-9122
The Moorhead Team5140 Reviews
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  • Jordan MoorheadBusiness Member
    Real Estate Agent · Austin, TX · Member since 2015 · 5k+ posts · 3k+ votes
    9mo

    Buy existing. Building is incredibly difficult and expensive. Small parks are relatively easy to find too as lots of people don't want them.

    [email protected]512-888-9122
    The Moorhead Team5140 Reviews
    WebsiteView Page
    2Reply
    • Roger D Jones
      Member since 2023 · 178 posts · 122 votes
      9mo
      Quote from @Jordan Moorhead:

      Buy existing. Building is incredibly difficult and expensive. Small parks are relatively easy to find too as lots of people don't want them.


       Damon,
      I would agree with Jordan.  Don't build such a small park from scratch- way too expensive.  There are plenty of small 'mom and pop' parks available oftentimes with a stick built house included.  Small mhps with with Grandma and Grandpa's stick built house are tough to sell as most home buyers don't want a MHP next to them and most MHP investors don't want to deal with a house rental.  

      1Reply
    • Damon Reed
      OP
      Rental Property Investor · Dunlap, TN · Member since 2016 · 8 posts · 7 votes
      9mo
      Quote from @Jordan Moorhead:

      Buy existing. Building is incredibly difficult and expensive. Small parks are relatively easy to find too as lots of people don't want them.


       Thanks Jordan!  I appreciate all the help I can get. I have a mentor that told me to start looking into that direction based upon some new trends he has heard about, but he's not a MHP expert.  I'll be giving you a call later today about a property I still have in central Texas.

      0Reply
    • Damon Reed
      OP
      Rental Property Investor · Dunlap, TN · Member since 2016 · 8 posts · 7 votes
      9mo
      Quote from @Roger D Jones:
      Quote from @Jordan Moorhead:

      Buy existing. Building is incredibly difficult and expensive. Small parks are relatively easy to find too as lots of people don't want them.


       Damon,
      I would agree with Jordan.  Don't build such a small park from scratch- way too expensive.  There are plenty of small 'mom and pop' parks available oftentimes with a stick built house included.  Small mhps with with Grandma and Grandpa's stick built house are tough to sell as most home buyers don't want a MHP next to them and most MHP investors don't want to deal with a house rental.  


       Thanks, Roger

      0Reply
  • Jason Ray Richardson
    Rental Property Investor · Brookhaven, MS · Member since 2017 · 186 posts · 108 votes
    8mo

    Way easier to buy than to build. I've done builds and rehabs and much rather deal with at least some existing infrastructure.

    0Reply
  • Damon Reed
    OP
    Rental Property Investor · Dunlap, TN · Member since 2016 · 8 posts · 7 votes
    8mo

    I appreciate the advice Jason Ray! Any advice on what groups or chats to become a member of for MHP investing?  By the way, I've been through the Ward's in your town and got the Tomato Gravy Biscuit for breakfast.  Outstanding!

    0Reply
    • Jason Ray Richardson
      Rental Property Investor · Brookhaven, MS · Member since 2017 · 186 posts · 108 votes
      8mo
      Quote from @Damon Reed:

      I appreciate the advice Jason Ray! Any advice on what groups or chats to become a member of for MHP investing?  By the way, I've been through the Ward's in your town and got the Tomato Gravy Biscuit for breakfast.  Outstanding!


       Small world. MobileHomeUniversity.com, Biggerpockets. Outside of that I just know the local guys that invest in mobile home parks.

      0Reply
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