I have never tested it in court but reviewing the lease it makes it clear that unless otherwise agree the rent is automatically increased at lease end to the weekly rate as its a beach property.

STRs usually do better when they are at destination locations such as beaches, lake homes, mountain cabins.... 

As others have said, you need to look at the whole picture.Somebody buying an oceanfront property in Laguna Beach might be happy with a 2% cash-on-cash return, because they are banking on appreciation.Then somebody buying a 12 unit apartment complex in Cleveland might not do the deal unless they are getting a 15% cash-on-cash return because they are going to see very little appreciation and will need to deal with headache after headache.If just evaluating the cash flow, a cash-on-cash return of 10%+ is right to me.

I am literally sitting on the beach right now and I have guys doing three renovations, two rental returns, and walking two properties.

If you are still at $300k you will not be in the pretty section which is close to the beach.

I live on the beach in FL and do all my biz OOS, MY phone seldom rings. 

Quote from @Chris Seveney: I agree in vacation / beach areas they are great but once you start getting into true residential neighborhoods I can see them being very problematicI think of course it depends so much on the neighborhood.

Relax by the beach, soak up the sun, and dive deep into real estate knowledge, all in one extraordinary event.

Over time I'd like to purchase more properties in other beach areas where I might want to retire at some point. 

Hi there, I am building a 3 bed 2 bath vacation rental in Sauble Beach, Ontario.