Because I need cashflow proceeds to start being withdrawn in 2 years and not today, I'm looking for how I can build up the empire with a larger portfolio with continued investments beyond the initial $250k now.  

Sort of.

The fact that the video of the "lady" is the only video I can find on the internet and it is as ambiguous as it can be, makes me believe there is some sort of gag clause in their contract so you can't be honest about your experience with them.

You most likely won't need to rezone, or get a variance of any sort, unless your lot is shaped strangely.

Build up your portfolio with a professional landlord and then as your portfolio grows transfer the assets over to a larger PM firm for ongoing accounting and management. 

I would just excavate a few 2'x2'x2' (or larger if possible) spot footings, w rebar and Simpson hardware,under the house (you will want to take up the floor to make this easier to do).

For larger accounts with PMS integrations VRBO is a passthrough and we are the merchant of record. 

I feel a loss of direction and that makes it really hard for me to focus and build.Do we keep at building a portfolio of small multi family (very abundant in my market, very rare to find anything above a triplex for sale), with plans of selling the portfolio and 1031'ing into larger properties? 

He is 69 and does not want to reinvest (1031 exchange), which leaves me having to make a much larger investment on my own to meet the 1031 requirements which is more than I’m willing to do at this time.

This sort of thing is market specific.