Jon,
I agree with Rich. It is about the location and the right price to buy it. Managing the apartment is a job but applying extensive use of internet, will make it easier for you. Since lots of travelers who are willing to stay in apartment than hotel are internet savvy. My experience is limited to Rio vacation rentals and I am looking at some properties in Siesta key, Florida where the price is still very high even after major corrections. 2%-50% Rule passes with flying colors in Rio but I have hard time finding properties in Siesta key which will conform to that. I will update on the board the numbers if I found one in Siesta key.
I heard that Clearwater might bring better returns on vacation rental than Siesta key but still not sure.
I did not research extensively any other areas in US yet, but some of my friends have condos in Hawaii and Costa Rica and they are pretty happy with their investments so far.
Cheers
nil