My guess is there are some STR owners or managers genuinely unaware their current pricing exceeds the price gouging thresholds until it is brought to their attention.]Will PriceLabs and other dynamic pricing tools- respond quickly and appropriately to these issues?

I would closely monitor your competitions pricing to see what is working for them.Vrbo has built in tools to monitor when people are searching for specific dates.

I'm researching them myself, after a tip from an investor friend, but can find essentially nothing whatsoever about them. 

Paging @Garrett Brown our resident STR specialist - what say you about tips for lead photos on listings??

Has anyone used the DIY tool, and are there risks?

I have a included a link to a PM locator tool ready to go with recommendations in your preferred area.

The precise property forecast can vary depending on a lot of factors but the general demand is really what you should use the tool for to make your plans. 

Still, if you aren't whittling down the number you are analyzing financially to a small subset you see before deciding what to do, you are missing an essential part of getting to the tipping point of expertise in your field.

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Tools like the BiggerPockets calculator and books like The House Hacking Strategy can guide you further.