Renting a property to tourists could be lucrative, but you could face stiff competition or only have guests at certain times.
You’d have to pay for a mortgage, insurance, maintenance and other expenses year-round.
Tax laws and regulations on rental properties vary by location. You could have to pay federal, state, local, property, sales and hotel taxes and business license fees.
Factor in costs for maintenance and repairs, plus property management if you don’t live nearby.
If you want to buy a property near water, consider potential natural disasters, insurance costs and possible lost revenue.
Mortgage lenders typically require larger down payments and higher credit scores for buyers of investment properties.