Primarily operating it as a LTR right now.Buying another 33-unit all townhome community with substantial upside by converting unfinished basements from 2/1.5 to 3/2.25 and 4/2.25 townhomes, adding Class A amenities, etc... 

Amenities, property management fees, repair and maintenance bills, insurance payments, and any marketing expenses can all be deducted from your maintenance and operating costs.Even if the fair market value of the property is technically rising, you can take advantage of real estate depreciation and cost-segregation tax benefits in the long run as your building and its appliances age.And for all the above reasons, multi-family real estate would be a sound investment decision for real estate investors looking for passive income.

It is the #1 amenity in that market.  

If you want to cut off any amenities that you are providing that are not part of the lease, cut them off and tell them why you cut them off. 

If you have the chance, I would encourage you to do the drive during rush hour to see what that feels like.Yes Chapel Hill rentals are on the higher side, but the trade off is less time in the car, and you get to live in a nice town with great amenities.

I would include an outdoor amenity space for residents like outdoor living rooms, fire pit, BBQ area, rooftop terrace, etc.

To go through your questions:1) These would be good to generate the positive cash flow, but looking at the overall market in those areas, it doesnt seem to be attracting any appreciation style amenities (i.e. jobs, etc.). 

It's a nice amenity to set you apart from other rentals.

If it looks promising, I personally look for user-friendly (reasonable) STR rules reasonably priced, partially or totally furnished property (nice furniture appropriate to the locale & decor and lighting can be added) in an excellent location close to the action and amenities, walking distance if possible.

Is it no amenities based on the competition??