Pooled Investment Community - Vacation Rentals (PROS/CONS)

[Josh B.]

I've been recently looking at an investment opportunity where I have the potential to invest in a condo right outside of a popular travel destination. Within the city that this resides outside of, there are strict zoning policies for condos being used as investment properties. Because of this, they're creating a resort vacation community just outside the city but well within the tourism hot spot. Across the street is already a popular resort, gold courses, beaches, ski slopes, you name it. They're planning on building (phase 1) a residential area in a park-like setting with high-end luxury "small homes" (detached condos) rented out at 300/night (weekly rentals). They cover furnishing down to alarm clocks and artwork - bunk beds are included etc. They are creating these condos specifically for the purpose of investing in this hot area without the problems with zoning. They are also handling the rental process and it's very hands-off unless you plan to use the property privately. Phase 2 will include a high-end shopping district built into residential community itself, tenants can walk from their cozy vacation home to a starbucks if they so desire. They've mentioned that because they handle rental income they actually pool it together from every condo and distribute payments based on your contribution as an investor - they say this is to ensure equal distribution because some condos will be rented for the summer only and some during the winter etc.

This process seems relativity new to me, I couldn't find much online about this method of real estate investing. I did find an Investopedia article that sums it up briefly (https://www.investopedia.com/terms/r/rental-pool.asp), but I haven't been able to weigh pros/cons from outside sources. Is there anybody that has invested in something like this before or would see problems with it as an investment?