During difficult economic times, fewer people tend to take vacations.

It's a lot more complicated than booking a flight, a hotel and a rental car for a vacation, and the stakes are so much higher. 

It would be the same if the tenant goes on vacation and brings bed bugs home with them. 

He has a vacation scheduled, but otherwise maybe 5 to 6 week effort (plus live-in may add some complexities)) .  

I think the reason for this that I have a true vacation rental.

Only if you consider working every night, weekend, holiday, and times when I should have been on vacation lucky, mucking around in crawlspaces, hunting down houses, falling through floors, etc. 

Regarding #2, we would be looking at beachfront areas in higher traffic vacation areas (Hawaii).

I may consider selling off my Indianapolis area SFHs to 1031 exchange to Nevada (Reno or Vegas, looking at those 2 markets) - I think my kids would rather have another home in Nevada (future primary, vacation home or rental) vs dealing with rentals 2000 miles away.

Pleasant area of Cleveland in 44120, and had some decent tenants that are vacating the property.

For instance, a duplex can offer more consistent income since if one tenant vacates, you still have another paying rent.