•Off-market deals: Creative strategies for connecting with potential sellers and standing out in a competitive market.

You purchased in 2020 so you're experienced in high-demand, competitive markets.

The only real advantage to using an FHA loan is to offer only 3.5% down payment, which in my opinion is barely justified as an advantage. 

So, in your considerations, I would park right there for a bit and determine how this would look for you.Since you have about 2.5 years to think about it before you would need to spring into action to take advantage of the rollover for tax advantages, maybe you try on a rental and see how it fits. 

Instead I want to take advantage of the opportunity I have of living rent free to invest my time and money in STR's to hopefully build that portfolio up and eventually make that my main source of income (I understand that will take time).

Look at DSCR loans for more competitive terms.

Pretend to be a renter and shop the competition.

You really have to be an expert and outshine the competition here.

How do SFHs fare in competition with these rentals as supply increases?

After paying a competitive rate for the property management and ASSET management that the small operator does himself.