I guess I don't see what equity in their home has to do with their desire to sell or not sell?  

As you can tell I am very new to this but I plan to educate myself as I greatly desire to be able to retire early or at least to not have to work for the rest of my life while contributing to my daughter's college savings. 

Hey Brendon,We have a small campground we built so hopefully I can offer a little help until others contribute.Lots of things determine the construction cost and not being from your desired location handicaps me.That being said maybe I can at least shed some light on your idea.Things that will determine actual per lot cost are power,sewer and water.1-Underground power is the way to go,more cost but more spaces because of overhead clearance restrictions.2-Available sewer also is best but septic systems work fine but cost more and chew up land area and require more long term maintenance (we have septic systems,3 spaces per system). 3- Water,there again country,or city water is best but a well and your own systems works fine also just requires more upkeep.As far as the park itself it's best to (IMO).1-set park up with three sections to accommodate different styles of campers,over night,seasonal and annual (if area warrants),all three have there pros and cons,overnight area is cheapest to construct since you'll just have bathhouse ( no septic,power or water per site). seasonal spaces will be completely developed but will rent for highest amt because it's short term (usually power is included into rate).Last is annual which again lots are fully developed but not so much in and out and consistent cash  flow,tenants put utilities in there name as they would a SFR. 

In addition to this, the federal reserve has been telegraphing their desire to start reducing their massive $4.5 trillion balance sheet assets of treasury bonds and mortgage backed securities as soon as this year.

Keep on drinkin' the koolaid ...If you want passive REI, and don't have any knowledge or experience in the field nor the desire to acquire these (which would not be passive) then go buy a REIT.

In our local, there is special zoning for such a thing- Rooming House I think- and honestly I have no desire to get into it. 

It'll be run again once insurance agent, listing agent, listing agent's office, etc, are all identified, but we can do it with just the borrowers if it's needed or desired upfront.

It is a very desirable area and the cashflow perspectives are very interesting.The Bad: The property is listed as 3 units. 

This assumes that it is well located dirt in a desirable neighborhood with a limited supply of buildable dirt.

I have no rentals. and no desire for rentals..