I don't believe there is a one size fits all answer here as every area and market condition is unique.

Each individual rental property will have their own unique cashflow. 

The thing about our house is that it has a unique layout that I only just realized makes it  (at least in my eyes) a perfect rental property.

However, not as rich a the market place was in  2021 due to the unique situation  of at home work and kids home from school.  

Christopher John Walker, you have to make the best decision on what your comfortable with based on your unique situation.

There was a lot of learning and fine tuning of my system/process along the way: make your listing as accurate and transparent as possible - are bathrooms shared, is it noisy at night, what is unique/peculiar about your place, what is provided for guests, what is kitchen policy, how many nights is an ideal stay, how will you be interacting with guests etc. 

Hotels are finally starting to improve on the drab monotonous decor that we grew up with, but it will never be enough compared to what an actual SFH STR can offer.The reasons I prefer STRs over hotels are: #1 better control over heating/cooling#2 more unique and interesting experiencesUnless I'm staying somewhere for a week or more, I don't cook or hang out in the space that much.

There are some really unique pockets in this town!

It remains popular as an investment and unique as an asset because it has reasonable price appreciation.

They all have their unique placement when it comes to tax purposes.Best of luck in your search!