@Bob HardmanAgreed with the other comments on here; I will add that townhouse style get much more interest than up/down.

The management companies seem to charge a lot for airbnb style properties, do you see this being worth it?  

Then you need to compare location - traffic, neighbors, use, and style...

Unfortunately, I don't think I meet your standards as I truly don't appreciate the Hef's decor style.

Is this how I get a seat at the table, Wall-Street style?

Ohana (mother-in-law style) studio units are extremely common and it is common practice to live in the main house and rent the ohana (short or long term).  

In Washington state N of Seattle the install is very typically $2/sq ft. the price of the product is what you decide for quality and style. 

I don’t want to step on the property manager’s toes, but there are some methods I’ve picked up along the way that I think work better than your average renting style and I would like to keep using them when finding tenants and maximizing rental income.

Be sure to note that just because a neighborhood checks those demo boxes doesn't mean it’s a good place to invest (this is also highly dependent on your investment style) So, understand the demos then take a more quantitative approach.

I’m guessing that they are notifying you that the style of fund you were in is now being replaced with those 2 options.