Any "near beach" locations for profitable vacation rental?
I have had a vacation rental in Dauphin Island Alabama for a few years now. We love to load up our large dogs and take them there with us on vacation (not easy renting a place that will accept 90+ LBS dogs). The house rents fairly frequently at local market rates but does not even cover the basic expenses let alone a mortage payment/opportunity cost of capital (it is paid for). When you are near the beach you need hurricane and flood insurance which are not cheap. Additionally, we are hundreds of miles away so it would be difficult to manage it myself so there goes another 25% in mangement fees.
Does anybody know of an area, near a beach, where this is actually profitable?
I get 10%+ cap rate for the rentals I own in Indiana. If I sold the vacation rental and bought property there, we could take some sweet vacations on profits (not sure what the dogs would do though:-) ).