Let's break down the pros and cons of investing in a vacation home for short-term rental versus a single-family home for long/mid-term rental, and the potential impact of each decision over a 10-year period.Investing in a vacation home for short-term rental:Pros:The potential for higher rental income during peak vacation seasonsThe opportunity to use the property for personal vacation timePotential for tax benefits associated with owning a rental propertyAppreciation in the property value over time due to its location near the beachHigher nightly rental rates for a vacation home compared to a long-term rentalCons:Seasonal fluctuations in rental incomeHigher maintenance costs associated with short-term rentalsPotential for more wear and tear on the property due to frequent guest turnoverHigher cost of entry due to the desirable location near the beachMay require a property manager to handle guest turnover and maintenance, reducing profitabilityImpact over 10 years:If you invest in a vacation home, you may see appreciation in the property value over 10 years, particularly if it is located in a desirable beach area.

STRs can potentially offer higher returns, but they usually require more hands-on management and are subject to seasonal fluctuations.

Long-term equity will stabilize and grow but in the short term we're going to see a bit of fluctuation because of the interest rate increases the Feds are doing. 

In general STR's fluctuate a lot over the year.

@Mohit Madaan  - "guaranteed", "no risk" and investments do not mix well :)Add foreign currency fluctuations and it will be hard to get 9% in my opinion.

If you invest for the long term then current market trends and fluctuations should not impact your overall goals. 

I bought land 16 years ago after living in Big Bear in JT and built a 2800 Sq ft custom home.I work from home and although I really do not care about the value fluctuation the area construction is flooded with air bnb investors looking for strong cash flow,low maintenance and they have it with sold out bookings for nine months of temperate weather.

I do not rely on appreciation as that can fluctuate dramatically up and down and you can’t count on it at least in my market.   

Not sure if it's because I just started looking, but one thing that I have notice is that with apartments is that there seems to be a larger price fluctuation than with SFR.

Margin loan interest rates fluctuate daily by several basis points, but currently, ours sits between 1.35% - 1.45%.