Probably not.Consider adding amenities to attract guests and raise your prices to fit that level of quality, but keep your guests number limited to less.

The research, vetting tenants, property management, repairs already done, etc. is attractive to a 1st time Rental investor. 

You can get by with just one, but 2+ is certainly attractive to renters, particularly short-term guests.

For such a community, I think pickleball courts, walking paths, and dock access to local waterways would serve as enough incentive to attract homebuyers but not incur high HOA/increases to retail price. 

For one, they'll attract better quality tenants, which makes vacancies, tenant turns, servicing your debt a lot more likely and less variance to when you go to lower or middle class tenants.

I'd love to get your feedback on which option you think is more attractive and why.Option 1: Equity Partnership- Target Properties: Single-family homes, multifamily properties, and land for development in prime locations.- Investment Term: 5 years - 10 years- Equity Split: Investor 80% / Sponsor 20%.- Preferred Return: 8% annually to the investor.- Profit Sharing: After the preferred return, profits are split 70% to the investor and 30% to the sponsor.- Management Fees: 2% of gross rental income annually.- Acquisition Fee: 2% of the purchase price.- Disposition Fee: 1% of the sale price.Option 2: Debt Financing with Equity Upside- Target Properties: Single-family homes, multifamily properties, and land for development in prime locations.- Interest Rate: 6% interest only for a term of 5 to 10 years- Prepayment Penalty: 2% if the loan is paid within the first 3 years- Equity Upside: Investor receives 30% equity of the appreciationWhich option do you think is more attractive and why?

The less attractive view and smaller units get very close to your example numbers and sell all the time.

they are the #1 tourist destination in the Caribbean, nice beaches and condos are extremely cheap...I personally would not buy a house in a hidden gem that no one knows about....that just sounds like low occupancy and low prices to attract people.

This means attracting businesses that provide jobs within the city and creating more shopping options.

I would also have thought they would have attracted only the most conservative investor whose primary goal was protection of principal not how do I get the highest IRR ..