We were careful with the money we spent on furnishing the place by buying online and doing work ourselves, and we were able to create a nice ambience for vacationers. 

This high demand can lead to higher occupancy rates and higher rental income.Seasonal Rental Opportunities: Beach areas often experience peak seasons for vacationers, which can allow for higher rental rates during these times.Personal Use: If you enjoy vacationing at the beach, owning a short-term rental property in a beach area can provide a convenient vacation spot for you and your family while also generating rental income when you are not using the property.Property Appreciation: Beach areas are often desirable locations for real estate, and owning a short-term rental property in these areas can provide a potential for property appreciation and a profitable exit strategy.Cons:High Competition: With high demand comes high competition.

Provide amenities that will help keep the family occupied when sightseeing is over with.Market directly to vacationers .

At vacation areas in warmer climates for STVRs in towns that cater to and whose economic success depends on vacationers.

Also, where you intend to invest can depend heavily on what exactly you REI goals are.As far as STR, areas that are popular with tourists/vacationers are always a good move.

Vacationers don't want to be more than 20 minutes travel to the major theme parks. 

Petersburgh that is already zoned as a STR and has a history of positive reviews.Good location but it’s only a 2 bed, 1 bath.It has a second living room in the back of the house that is plenty large enough to convert to a 3rd bedroom which I believe will increase the STR potential, as the area has a lot of vacationers and families who would need a 3rd bedroom.QUESTION; Is there any pitfalls in getting a permit to convert a 2nd living room into a bedroom that I don’t know about?

LOL  @Paul Sandhu has a great business model but, if you don't already know, his clientele are traveling blue-collar workers for the local factories who would otherwise stay in motels - so if you're targeting vacationers or white-collar businesspeople, you'll want to outfit your properties quite nicely.  

I prefer the vacationers...more fun to deal with.....

No one is going to take care or screen vacationer better than you.