Any long term buy and holders using vacation rentals?

[Charles W.]

I have noticed a huge increase in competition in my area for homes, I've noticed that the major hotspots for vacationing still have very little competition, and prices are still falling. Has anyone had any success long term with vacation rentals? We are not talking condos on the beach here, but sfh in vacation areas (although if you've managed to make condos work that would be interesting as well).

[Loc R.]

A friend of mine accidentally got into renting timeshares...he bought his timeshare in 2003 in a premium spot. Due to work, life, etc. he ended up renting it out in 2005, 06...when the markets crashed he saw a bunch of people essentially giving away their timeshares at the same location, so he bought them at rock bottom prices.

He can sell his "premium" weeks for $4000-5000 each, with annual fees and taxes ranging in the $900-1200 range. He paid, on average, $9500 for each one.