here are just a few:-interest rates and prices both remain high. this has really hurt cash flow across the board.

interest rates and prices are high and people are contorting themselves into pretzels to try to buy. 

The 10% vacancy and repairs, along with 5% capex in my opinion are pretty high. 

Fund higher quality cosmetic / light rehab for durability and dignity for tenants.

For example, most Developers in the Seattle area are taking many properties and turning them to condos since that is a booming market with high rental rates And sometimes more conveniently built and accommodating then a SFH.

Like you we had 3 teams of two door knockers  2 for safety one women one man.. and we door knocked every NOD in our 2 mil MSA  all to boil it down to if we were very lucky to get 2 to 3 deals a month.. now we were a little different I only would buy very high equity deals.. and we leased back .. because as you state 99% don't want to leave.. 

Maybe the tenant set the thermostat high? 

Condo's usually have high HOA dues which will eat into your cash flow.

.• Use some equity from the sale to make this transition smoother.I’m torn between maintaining our current home as an asset and buying  a new smaller house to use as a rental after we move back in versus simplifying and focusing on a single upgraded property Considering factors like market trends, potential equity growth, and quality of life, which path do you think would be most beneficial?

Some high and lowlights:- I had one tenant that brought German cockroaches in and then blamed it on me- Same tenant asking if her daughter can visit but failed to mention it was 5 more very noisy people- another tenant having constant loud arguments with his gf- tenant saved some of my stuff when the house flooded due to a pipe burst and another time during a monster rain storm.