So I think the pricier markets something like Reno, NV (no bias haha) where there is inventory that needs a house hacker but we can still see the margin and exit and realize that hard work sweat equity. 

But, if the current tenant base can't afford this big of an increase, then you will see the turnover no matter what.  

The good part is that they are giving tenants the ability to see things.

Why don't you pretend to be a tenant and go look at some local S8 properties to see the level of finishes they have?

I think a lot of people see the short term rental business as sexy, but the amount of work it takes quite extreme until you’re able to automate  Your business with scale.

See the below screenshot.If the zoning allows a 3-family, you would need to meet all the rules and regulations in the Building Code as well as the Zoning Ordinances.

I can't communicate with it, change codes or even see the codes.

Bottom line is it's a pain in the butt and in some areas you have to escrow money for those items (see the escrow column in attachment below).  

Sell, pocket $200k in equity, appreciation since they bought it, bank 25% for a new deposit in a year once they repair credit, buy two new second hand cars because they need them, pay off credit card debt, put a little extra to the side for increased rent payments for next 12 months, and reorganize to buy in 12-18 months... now they see the light, a chance to move forward, to not stress, and they're lucky the market increased so much... but if they struggle to keep it, struggle to make payments, then 10 months realize they need to sell, would they have as much equity, maybe, maybe not..  

We ended up going the HELOC route on that property for a few reasons. 1) the interest at the time was only 5%, which although seemed high, didn't matter too much with our potential property showing a 18% ROI 2) we leveraged a second home loan with 10% down for that new property, so our HELOC withdrawal was relatively small compared to what would be needed for a traditional loan on a rental. 3) I dont think I will see the rates in the 2% again in my lifetime, so figured I should hold on to that "free money" instead of selling it.