Vacation Rental Purchase Opportunity

[Michael Johnson]

I have a friend who owns an upscale beachfront condo in west FL. The property is located in a upscale area, nicely furnished and well maintained. We have been spent time in this property for the past several years and currently have the opportunity to purchase 25% ownership for 175K. The condo is managed by a local company and rented as vacation property the majority of the time. The yearly gross on the rental is approximately 45K and I believe the management company charges 25%.

My wife and I are excited about the possibility of investing in this property, but still, we are worried about stepping on on the limb with the economy in such bad shape. We own a couple of local duplexes, but this would be our first venture with a vacation rental. Can someone give me a few pointers so that I have covered my bases and asked the right questions?

Thank you for your time.