Hi, I'm basically looking to put my ren'py skills to work so I have two questions:
What Genres (non extreme ones) are popular these days? I know Incest is always good but anything else?
And what software do people use to make the art? I mean, assuming you can't draw. I've seen people using Honey Select or Koikatsu, but what about those more realistic ones?
I believe you are asking the wrong questions. It sounds like you don't have an idea for what kind of game you want to create. If something isn't your vision, your passion, it's not likely you will enjoy the many hours you will put into it.
If you're looking to make something by polling every decision or attempting to placate the most vocal players on F95 - don't bother.
If you're looking at creating a game because you think it's a way to earn a living - don't bother (yes there are exceptions, but more than half of adult game creators on Patreon bring in less than $20 per month from their subscribers).
If you're looking to make something you would enjoy playing and have a vision for a good storyline - don't hesitate.
There are people with popular games which have content that many wouldn't enjoy and there are many games that never build a following that were developed by the creator by majority vote in polls on F95.
Do what you enjoy.