What are the numbers on east coast beach homes?

[Chase Cannon]

I have been looking into adding a vacation rental on the east cost (NC, MD, NJ) to diversify my existing properties. After looking at some of the sell prices as well as the weekly rental prices offered May-Sept vacation timeframe, I am wondering if anyone is willing to share their experiences on the finance side of their investments. Clearly, there must be a vacany rate issue in the winter months (I assume). However, some of the prices I have seen based on an assumed 25% downpayment on the 30yr fixed (minus in cap exp.) seem to make the RoR reasonable enough to consider. Any details (good or bad) that they wish to share would be much appreciated. 

Thanks. 

[Myrtle Mike Thompson]

@Chase Cannon I can speak to North Myrtle Beach, which sits just below the NC border. Existing STR beach houses are selling for roughly 10 times gross annual revenue. So a property listed for $800k has probably generated about $80k gross rents the past couple years. The ROI numbers often work if you can purchase at a good price, and with good financing terms... most lenders will not require 25% down on vacation houses like they do with the condotel properties around here. Another strategy is to buy a house that has not historically been used as a short-term rental but possesses all the characteristics of a viable STR... large, close to the beach, has a pool or hot tub, etc. These can often be purchased at a bit of a discount compared to existing STR's. Of course, there are typically renovation and/or staging costs to consider, but that process of "making it our own" can be part of the fun of real estate investing. Good luck!