Making the numbers work - Overpriced Market?

[Christopher Knibb]

I have been searching certain areas in Florida (Panhandle Beaches; Disney area; Clearwater to Sarasota Beaches) to buy something as a STR. Looking at average STR gross revenue and the related costs, particularly the mortgage carry costs given the inflated prices, I can't find anything that pencils out with a reasonable ROI.

Are others buying in this market or standing by for a correction?  How long does it take for rental rates to increase to absorb the higher real estate prices?