Plus being across from a hospital sounds good to a nurse but bad to a vacationer seeking peace and quiet....I'd sell and buy a couple of nice quaint places that will appeal to everyone....

Read some studies (but consider who paid for them and their motivation :-) And cities like LA, Seattle, NY cannot blame the vacation rental market for their housing problems, those are the result of failed policies by years of leadership....Vacation rentals have many benefits over standard rentals that you might consider a) they open up areas to vacationers that would ordinarily not be accessible (not everyone wants to stay in a hotel district).b) they almost always improve the neighborhood they are located in - the house, inside and out, must always be in near-perfect condition in order for the landlord/host to stay in business.

The density of vacationers down here is second to none.

They can drive you nuts with repair requests and with vacationers they will want it fixed immediately.Personally I turned people down who wanted to sublease my house a few blocks from a marina. 

They have had over $2k in violations because of vacationers being loud, bringing more cars than allowed, bringing pets, etc.

We are looking to purchase a 2-3 acre lot in a popular year-round vacation area and possibly add 3-4 tiny homes on it and renting them to vacationers who are looking for something different and affordable.

You can only rent to vacationers and you can't rent to any of the other booming sub-markets: digital nomads, snowbirds, local residents or retirees.

I do personally think that when vacationers stop traveling as much like in the times we're having now with Covid and other market downturns then it's beneficial to be either on the beach, have an ocean view, or be located very close to it. 

A Ski Chalet in Utah that attracts vacationers in the winter might only be 30% occupancy but regular day to day Airbnbs are 45-50% for people who people don't know what they are doing or upwards of 80% for professionals.

I would like to have a long term renter so I don’t have the frequent turn over with vacationers.