@Marie GraboREO's were hot right after the market crashed.

I f you chose a good area where the market is hot, you would probably do OK. 

Maybe in an ultra-hot market you could just sell outright (flip) and collect the extra cash but now you're looking at significant tax implications and there's no long term residual income.  

Stretches with no electricity or hot water.

The other big reason is that STRs in the high desert have a certain look and in order to achieve that look, owners typically have to spend more money in reno to get to that STR look and this includes amenities that your average LTR in the high desert is missing such as outdoor showers, hot tubs, etc.

The Demand is so hot right now and the market is so tight.

So, after vacancy, maintenance, and capex, I am not doing so hot in the cash flow as I thought I would.

The bad - there is a ton of demand for rental units, and it is a hot market.

By doing this, and assuming you have more money left over at the end of each month, this will help reduce your balance much faster and yet you will still have available capacity to use, for when you see that hot deal that you need to jump on. 

@Chase OlsonI also use Zillow, Trulia and Hot Pads.