I recently vacationed in Destin with another family and returned to the same VRBO rental we stayed in the year before.  Destiny East neighborhood if you're familiar.  Our families are considering purchasing a luxury rental that mirrors what we stayed in.  5br/5ba, very unique pool, outdoor bar, 2 blocks from the beach, 15 years or less old, granite, stainless, etc etc.  

We have a budget of $1.6M and are looking for a 3% COC, 6% NOI. With debt we'd use to finance the purchase, I'm estimating we'd have 10% of gross rents left over after debt service, setting aside for reserves/cap ex to reach those returns.

We made the owner of the property we stayed at an offer, but he's not going to sell cause he has a cash machine.  The property rents for $1K a night in peak season and rents for 40 weeks a year, grossing almost $200K annually.  He paid cash for $1.1M.

Can we find anything in this stage of the market cycle that will meet our goals?  We are only considering properties that jump off the page when you see the VRBO listing.