Essentially he rehabs his properties to make them undeniably high quality (not just "good enough" for section 8) in order to generate a huge demand and thus be able to be extremely selective in his tenant screening process. 

Housing demand is up as well, many who rent want to buy.

I lend money privately and would never consider this as it is dependent on things out of my control (permits, neighbors, you being a good host, rental demand etc) I sell a ton of STR that are in actual resort communities and have great amenities and they are all  competing for the same guests, I can't imagine that there is a need/demand for this type of unit.

Beautiful city, near the coast and mountains, a ton of businesses moving into the area, large demand for property, etc etc.

i am trying to gauge the usefulness of a service that I think will not have much demand. 

You can then determine the best time to sell based on your own personal situation as well as macro supply/demand factors at the time you wish to sell.

@Alan F.Every market will react differently depending on the the supply an demand and the economic drivers in that local economy.

My point is that in a market where overall demand is unbelievably strong, the opportunity-cost numbers are not that strong for an all-cash, or any for that matter, acquisition relative to past history. 

After moving in they began to complain of a cat urine smell (which does not exist) and demanding that I replace the carpeting.  

In the end, good wholesalers know how to play based on supply and demand.