First time REI - vacation property

[Aaron S.]

We are first time real estate investors and thinking about investing in a FL vacation rental property.  I have a couple of friends that have gone down this path that are showing me the ropes and I would also appreciate feedback from the forum.  Here is our situation:

- In 6-7 years will be empty nesters and likely spend Jan - May in Florida.  There are arguably nicer warm places to spend the winter, but I'm an avid angler and the desert doesn't work for me!

- Have around $3M liquid that will be invested in equity, fixed income and cash

- Have a good income and low expenses, so don't really need the investment property to turn big profits.  Profits would be a bonus and give us return on the cash investment.

- Would probably spend 4 weeks in Florida annually for the next 6-7 years... plus weekend getaways

- A couple of target areas would be Sanibel/Captiva and the Keys.  Love Sanibel/Captiva, but fishing and diving is better in the Keys.

- Would probably be a cash deal or if it makes sense finance up to 50%.

- Targeting $600k range

- Like the idea of a single family vs. condo... if we spend the entire winter here, I can't be couped up in a condo.

- Would like let friends/family use it "at cost" or free for a few weeks during the year.

- Obviously would like something nice but doesn't have to be million dollar home with high end finishes.  A vacation cottage is fine.

Goals:

- Have somewhere warm to escape the MN winters more often

- Return more than I would in cash

- Build equity / buy @ a discount even if it means some remodeling

- Spend more time in the sun and less in the office

I'm in the research phase right now and would really appreciate any resources you could point me to or any words of warning.  We are in a good financial position due to many years of hard work, so we can take some risks but want to be measured and smart in our approach.  I realize that investing a couple thousand miles away for our first time probably isn't the best, but I would have no problem jumping on a plane when needed to go down and address issues.  Also have friends in both cities that could help with little stuff.

Thank you so much.  Really value your feedback.