Patrick
My condolences for the loss of your friend
But what a great inheritance she left you: the joy of germinating the seeds, growing the seedlings and watching hundreds of her 'babies' flower in a couple of years
Yes, you will need quite some space for a couple of thousand Daylilies
But I'm sure your friend had several seeds of each cross, so perhaps you can germinate 2 -3 seeds of each instead of trying to germinate them all?
Daylilies are quite easy to grow and they do well in containers, perhaps that would be more convenient for you?
Mayo