I’m thinking of offering an option to buy in the lease maybe after three or five years with no money down and the sale price would be the low end of the Zillow estimate. 

The plan is to divide the 20 acres into lots sizes of 2-3 acres and build them to accept manufactured homes(double-wide).

They offer an option for you to take progress pictures and track your weight as well. 

House-hacking is one of the best ways to get into real estate, so this could be a viable options.

It's a favorable rate, and given the equity you have in your property, you have a good foundation for securing additional funding without compromising this rate.Considering your property is now an investment, and you're looking into financing options for updates, a VA loan could still be a viable path for you, even in your current situation.

I also have extreme anxiety and having my neighbors pissed at me is 100% not an option for me.

You will then have a few options with that rent money....you can put it into principal or you can start saving it to purchase yet another property.

He will try to justify that joining his program will be your best option, unless you have an unlimited amount of money and time to spend doing the research and learning real estate investing on your own, but the reality is that it does not take much time nor money to learn what he teaches, and even more; it will basically take a dozen of some of the best real estate investing books on Amazon and the time to go through them, subscribing to good sites as this one,  and joining a couple of good REIAs in your area, without having to pay for such expensive and useless mentoring.

Is there another option that the kids should consider?

I inherited a house and am currently exploring options to use it to get money to consolidate some of our debt and potentially have money for a multifamily.