I lean toward the latter—this is more about economic conditions and the lingering post-COVID effects.

The good thing about it is that it's quick and convenient for both yourself and the lender, the disadvantage could be that it might impact/increase your DTI if the appraisal came back lower than your actual current rent being received. 

I am still leaning toward the holding company, but mainly for anonymity and passing assets down to my children.

We don't have kids yet, so we knew this would be the most comfortable/convenient time in our life to house hack.

However, since most of your assets are jointly owned, a single revocable trust might be simpler and more convenient.

STRs also make for a convenient scapegoat for the government when they need to divert attention away from their own policies that make adding more housing units more expensive/time consuming. 

It's the in town STR properties that aren't particularly convenient to any of the major attractions that have struggled the most since this market became crowded.3) The difference between good and average or bad STR operators is huge. 

We were planning on selling it but are leaning towards keeping it and using the BRRRR method.

There is just less pressure and in general, the tenant class is better.Handyman & cleaners are needed in general so I recommend leaning in and making it happen.

Columbus, Ohio is a great market to consider if you are leaning towards that appreciation.