I charge higher nightly rates and don't have large properties that can bring unwieldy guests.  

I agree.. just look at any large mid west or rust belt metro.. there is a ton of houses avaliable the question though will folks buy in certain neighborhoods where inventory is readily avaliable you can buy existing in many of these markets for far less than new builds.. so to me its really a neighborhood issue  a school issue a crime issue etc etc..

We added a 2nd one and both were solidly booked so we added 2 more haha.

This tactic is unlikely to be productive when there is a large delta in rate.

OR refi one at 70% and get the 45k loan leaving some debt on the line of credit but keeping home 3 free and clear and adding a lot of value to it as well as getting some really good rental income from it.

I removed the chimney and added modern HVAC, making it the only house on the block with it, significantly enhancing its value.

However, if you've picked up on signs of potentially problematic behavior during your interactions, you might be able to highlight them by adding “good tenant conduct” to your list of standards. 

I removed the chimney and added modern HVAC, making it the only house on the block with it, significantly enhancing its value.

Quote from @Tim Horning: Hi Carl, I am going thru the exact same issue with my first rental; a large 3 unit house.

They’re built for heavy use and have faster drying times—usually 30–45 minutes—without needing major electrical changes.If you’re up for a bigger investment, adding extra stackable units in the garage could be a great long-term fix, though it’ll mean some electrical work and setting up proper ventilation.I’d probably go for the commercial upgrade in your current space first—it’s quicker and might solve the bottleneck right away.