You can also lengthen your minimum stay on Airbnb/VRBO and price your homes to be competitively under what your competition is charging, that's my strategy right now.As for property #2, why not list it for sale and rent simultaneously?

We are in a market where, when there is no pandemic, there is fierce competition for rentals, so month-to-month is works for us.

While I'd be shocked if this is the case, if all the owners in your market pay for garbage in SFRs, you'll be at a competitive disadvantage if you try and have the tenant pay.I don't necessarily think you need separate accounts (we'll leave security deposits aside).

I think these types of investments work for three specific scenarios:1) You can buy multiple of them in the same building and use them only for STRs via AirBnb to reduce operating costs and maximize returns.2) Investors whose portfolios already have lots of appreciating properties and they want a luxury lifestyle at a fraction of the cost.3) Seniors on a fixed income with limited resources who plan to carry them through retirement. 

How competitive is it?

To all my active duty investors, you have a competitive advantage right now.

If it's too competitive in that region, which I know it is, then start looking out of state.  

I look at the flip side ... a few months ago everybody, their brother and their mother were investors - I have seen less competition the last few weeks and have had clients pick some up that may not have been able to a few months ago.

It would only mean you're getting a fraction of the tax benefit for the wear and tear on your vehicle while the rest is being allocated to the other members, as Michael noted. 

Granted real estate prices are a slow lagging indicator and there has been so much pent up demand, competition and good jobs and low rates, rents are up and prices up over 6% in my local area.