We own 4 vacation rentals and even though some are 3 bedroom. we offer them to couples for less $ as we find there is a big market for it, the damage and hassle factor is much lower, we offer reduced rates in off season to return guests, and the retired couples tend to return more often than the families. 

I had just assumed income would play a huge factor. I

@Steven ZhouThe most important factor is your property management company.

But, what happened in Silicon Valley is that even with the market crash, and the 6 - 8 month decline in rents - is that then the foreclosed-upon owners were now looking for rents, and rents not only came back to where they were, but soared way beyond what could have been imagined.So, unless your rental is in a town where the only employer may go belly-up (a one-factory town), you probably won't have to worry about it. 

I think the biggest factor is networking.

Our current tenant loves the place and has expressed her intentions to stay there long term.We have since replaced an LED light fixture due to factory defect and had a maintenance call from the new tenant.  

They shine up really well when they have original paint due to the high quality of the luxury factory paint job.  

FFC's are huge for small operators because it is the big boy's advantage in that if food costs soar you can't pass along all of that to the consumers so it starts eating into your bottom line.Another factor is long term planning.

What would your strategy be if cash flow was not a driving factor? I

The issue here is although there are some great investments here, the owner/occupant factor is making it tough because the houses in my budget are either too far a commute from the City or not in the condition of something we’d wed want live in the next few years.