I was thinking only long term rental would be healthy unless tourism is strong (it has not been in maybe early to mid 2000s).

The thing I still LOVE about Galveston is value add opportunities in a place with year round tourism.

Navarre, FloridaCondo: Studio, 1 bathroom, bay view, fishing pier, pool, gazebo, boat parking, sleep 4Purchase Cost: 290kInterest Rate: 7% Closing Cost: 3% ($8700)Cap Ex: 10%AirBnB Fees: 3%Management: None (self managing) Loan: 10% Down; Conventional Second Home Property Taxes: $3388/yr (from county assessor's office) HOA: $523/month (includes cable, trash, maintenance)Assessments: $5600 (based on neighboring unit)Insurance: $1800/yr (based on neighboring unit, condo covers exterior of property)Internet: $55/month (Googled average; basic cable in HOA fees)Electric: $131/month (Googled average)Water: $25/monthMaintenance/Repairs: 1.5%/month (based on maintenance performed in 2022)Gross: 43k (based on neighboring unit, is on par with the 75th percentile for AirDNA and similar properties on Rabbu)State tourism taxes: $245/yr (based on neighboring unit)BP Calculator: Monthly cash flow: -$55 /moIncome: $3,583 /moExpenses: $3,638 /moCoC ROI: -1.76%

Galveston is a tourism market and we will always cater to that.EDIT: As soon as I sent this, I got my email from the Parks Board about HOT.

Regardless, make sure your city and neighborhood that you are investing in have different types of STR travel demographics.For example, here in Tampa not only do we have theme park and beach tourism (#5 ranked beaches by TripAdvisor in the world in 2021), we have educational tourism (one of the largest universities - USF and then UT), and also medical tourism (we have some of the best hospitals in the country especially for outpatient services).

And it can still make sense as a cash-flow play due to Arizona's very friendly treatment of short-term rental properties coupled with a big tourism draw.Way more dog-friendly too: I walk my dog off leash every single day.

Orlando has the theme-park and convention tourism, Miami has the Latin vibe, the West Coast and the Space Coast have great (but very different from each other) beaches.

In regards to interest rates going up, housing prices slowly going down, and tourism slowly decreasing, what are some good “Plan B” tips that you would provide for a first time investor.

Destin to Panama City beach for short term rentals: Strong tourism and beautiful beaches, feeder market that makes it easy for people to travel down to emerald coast (airports), tons of gentrification and construction, high affluence, limited land, you can only short term on the south side of highway 98, family oriented and safe. 

This can be rented by weeks or through Airbnb, although the criteria to be able to rent through Airbnb are getting tougher, and now there is no tourism at all due to COVID-19.