Buying a flat in Italy - Considerations?

[Laura Reese]

I'm an American living in SE Asia and considering buying a small one bedroom flat somewhere along the Italian riviera.  Why?  The dollar is strong, and long term, I'd love to have a place we can go to for months on end and explore Europe.  In the meantime, we'd airBnB it when not in use by us or friends or family.  

My experience: own 1 house in CA that I manage directly, and own a property complex in the midwest that is managed by a property manager.  So I have some RE experience - in the US. 

I'm feeling super naive, however, because by this time in my cursory investigation, I would have thought the obstacles would've dissuaded me.  So, I'd really appreciate you being a sounding board here.  I feel like I'm in fantasy land.  Don't get me wrong - I love dreaming about owning a flat on the Italian Riviera.  But I have a feeling there's some reality that should  be bringing me down, man.  Help me find that? 

Here's a sample listing (not an actual one I'm considering): http://www.casa.it/immobile-appartamento-im-ventim...

Some fun facts / considerations:

1. Sale Taxes / agency fees / transaction fees: Could be up to 20%
2. Currency risk
3. Gross yield looks like ~ 6-8% so real yield might be 3-4% - not great.
4. Inexperienced with international real estate .
5. Titling - will likely follow Italian inheritance law - could be 4-6% estate tax due
6. Unforeseen red-tape /expenses
7. If we fail to qualify for visa, can spend no more than 3 months at a time in our flat (but we have a good chance of qualifying)
8. Income taxes on property rental around 23-27%.
9. I don't believe our worldwide income could be taxed, but I'm reading conflicting info. Italy tax rates are 23% to 45%. Of course there is a dbl taxation agreement with the US - We wouldn't work there so should be non-issue. 

Anyone care to talk me out of / into this?