Is there a way to gauge rental demand before hand other than speaking with other realtors in the area ?  

From technological advancements to shifts in work habits and consumer behaviors, several factors are reshaping the demand for commercial spaces.

Your management of this property would be more burdensome, however, because, as you said, it's similar to a vacation rental (but not quite as demanding).

Investors probably felt that getting a 15% IRR with a syndicator is way better than their 10-12% yield at best on a turnkey property.I think many have learned their lesson and we’ll see demand rotate back to ownership. 

Rooms for rent for $1000 or less are in high demand. 

Second, identify the type of property they demand (ex. well-built townhouse or duplex, with on-site laundry, amenities, built 1980 to 2010, private entrance, etc..). 

High rental demand so good tenants.

Transparency is more and more demanded by investors as well as the gov FTC, CFPB types.

Based on your goals, experience level, and my assumption that high earning w-2s tend to be demanding of your time, I actually think that there are better ways for you to offset your w-2 income.

However, I think even these returns will get eaten up as more investors jump in and good operators demand more upside for themselves.