Multiple LLC's get to be so expensive and complex to manage that one very quickly sees diminishing returns.

Lastly rather than diminish the return from their primary source of income they will seek passive sources of real estate return. 

Turnkey properties are very tempting for obvious reasons, but from what I read there is a strong argument that the trade-off of relative passivity for diminished returns isn't optimal.  

The supply has remained limited throughout 2023 and diminished slightly in the last couple of months.

Generally speaking, people have short memories, so I would predict that after the risk of spread has diminished and/or a vaccine is out, the people would flock back.

Only then can you do HARP Loan Which may help people who are facing diminishing value of property compared to balance owed. 

I just feel the wear and tear you would get on a 6 bedroom would be unbelievable and the rate of return on rental units after a 3 bedroom is highly diminished.

Smart HOAs will do this as it greatly lessens the likelihood that an owner would sue the HOA.If they refuse, have an attorney send a letter threatening to sue the HOA, Board, & Management Company as their actins diminished the value of your investment.

However, your tone was very critical and you repeatedly diminish my credibility by saying things that you have no reference to how I work. 

Five years into creating, decorating, managing, buying and selling vacation rentals has taught me that the window of opportunity and potential for the asset class is tightening, closing and generally diminishing with time.