Vacancy rate is going to be dependent on the size of the house. a One or two bedroom that you can "turn and burn" can hit 90%, but less likely the larger the home (typically you only get vacation type people, with smaller bedrooms you can capture business travelers as well).
does your market tax like hotels yet? if they dont, they will, or they will shut it down. There are two types of cities in this game, the ones that cave to the hotel lobbyist and shut it down and then the ones on the front end that are taxing it like hotels. With sales tax and hotel tax, in my city, add 15.25% off the gross. If they dont have a permit process yet, they will...
In my opinion, make sure you have a secondary exit strategy. when you are dealing with a frontier industry, there is always the chance it can get shut down at the drop of a hat. if all your eggs are in that basket, you could be in trouble. However, if it also profits on a long term rental, or you could sell it and profit, go for it!
