Wondering if anyone caN share their experience on vacation home rentals, specifically on the Shore, but any advice will do.

My background is that I own one rental home. Currently, I am researching the market for a second rental home. My preliminary plan is as follows:

build new home for roughly 600-650k within 2 blocks of shore.
rent at weekly for 2,500-3,500
drop down significantly for off season.
Some questions:
financing - is 30% down the norm for such properties? anyone know of scenarion where I can get away with 20%.
Off season - my concern is putting so much pressure on the summer months to make up the mortgage for the year. Given the shore locaiton, how unlikely is it that I get any off season tenants.
Rental agencies - im 2hrs from the shore so it may be best to use an agency to rent this out. How much do agencies eat into profit?
thanks for any and all advice.

I have a shore property that I rent out for 1 month and use the rest of the summer for my family's enjoyment. I find the numbers don't work too well so be careful. The off season rents drop down to $ 1500 - $ 1800 a month and their are tons of properties available. I had trouble renting it off season last year. The previous 2 years I had it rented. The realtors take 10% that the landlord pays down here. You have got you make all your money during the summer and if you get the off-season than that's just gravy. I wouldn't build but look for an existing property instead. Tough to find any lots or teardowns close to the beach. If you pick a popular place close to the beach and rent it out for the entire summer you have a good shot of making money. P.S. Double-check your flood insurance and flood zones as certain areas the flood insurance rates have skyrocketed since the major flooding in 2012 depending on your elevations and flood zone.

@Jean paul Valley mark gave you some solid advice especially in the off season some spots at the shore look like ghost towns. I believe 20% would be doable just gotta get with the right people and come up with creative financing solution, lease purchase or get with a wholesaler and see what the two off you can come up with...

Thanks for the responses.

Mark, I am wondering why you recomend against building? I have only started my research but it looks like a lot of open lots in the seaside area due to the storm. My thought is to purchase the lot at a discount (say 20-25% less than advertised price if possible) then work with a local contractor or building company to put up the house. I like the build and rent scenario because then I know what I a buying. Let me know your thoughts on this.

Donte, I would love to get down to 20% if possible so thanks for the advice.

Also, to anyone familiar with renting in this area, how "bad" is the off season? Mark, you mentioned that you had trouble renting last year. Is that the norm. Most likely I will budget the home in a way that the summer should come close to making up mortgage. Even if I take a hit over the year, I will be happy coming close, as I see this area as a good value play.

Plus, I love the shore and want to be part of the rebuilding effort!

Lots may not be that cheap depending on how close you get to the oceanfront. The prices drop way off as soon as move away from the ocean. Most renters want to be very close to the ocean (within walking distance) so be careful. I am not sure on the latest contractor availability but last summer they were all going nuts so prices have gone up and lots of people did not get their homes fixed in time for the summer when they thought they would be done. Finding a reputable less expensive contractor to build may be hard to find because they are so busy. Again lots of competition for renting during the off season so I wouldn't depend on it other than you will really have to drop the rent and the quality of tenants could be so-so in the winter because it's a ghost town. I said find an existing home as I am asumming its cheaper and easier to execute buying something already done. Good Luck !