Vacation properties as investments

not worth the hassle, IMO.

I have looked into this extensively. You will need to rent the property out 80% of the time to break even, on average, give or take a couple of percent. 80% is doable but you will cut it close every year. The insurance costs are high and the monthly fees range from 600-1300 a month.

If you want to do this you must be financially solvent. Do not take an 80% occupancy for granted, no matter the history of the property.

If you buy one do so for your own enjoyment. Think of the 80% occupancy goal as a bonus that will enable you to build equity and have a low cost vacation home of your own. Be prepared to shell out cash during off months and years.

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Terrible unless you can get them for a great price

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This. The return (or vice versa - loss) is from rapid appreciation if or when that happens. You are still smiling if you sold in 2006, still hurting, six years later, if you didn't.

BIL purchased a condo in July, 2004 about 45 days before IVAN. Almost nine years later the ASKING price per square foot in the same development and on the same floor with the same view is about 40% of his cost. Very few, if any are actually selling at a even lower price. Monthly condo fees will eat you alive and if you do have a storm with damage the assessments for the deductable are large. BIL paid two assessments after IVAN, one for 25k and six months later one for 20k. Condo was not usable for 2 years, monthly payments continued and monthly condo fees continued.

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BIL purchased a condo in July, 2004 about 45 days before IVAN. Almost nine years later the ASKING price per square foot in the same development and on the same floor with the same view is about 40% of his cost. Very few, if any are actually selling at a even lower price. Monthly condo fees will eat you alive and if you do have a storm with damage the assessments for the deductable are large. BIL paid two assessments after IVAN, one for 25k and six months later one for 20k. Condo was not usable for 2 years, monthly payments continued and monthly condo fees continued.

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I would have let them foreclose on that fricker

Terrible investment. If you want it for your own fun and to write-off some interest that you're going to borrow anyway then it may make sense. I prepare hundreds of tax returns a year and NO ONE makes money off these, especially in those areas. Property taxes and insurance are so outrageous you'd have to get top dollar rentals in November and December to ever think about making any money.

you can buy a shite ton of hotel rooms all over the world for $300k.... not to mention the interest you will pay..

it really boils down to being stuck in one place (and maybe offsetting some cost) vs the option of going else where... personally i don't want to spend every vacation on the gulf of mexico.