This creates a particularly challenging environment for the investor in a general sense:- A regional vacation market- Competing not with other rational investors, but with people who just have a mountain home; and therefore are fine to run it at a loss.- Competition can and actually will increase in bad times, because people who own casually for second homes will try to get something instead of nothing by listing their properties for the first time.- People will fight to give everything they have to keep their primary residence, but if their second or vacation home becomes a pain in the rear, they’ll sell.

Finding good yields is tough in this environment. 

They will, and in today litigious environment thats a lawsuit. 2.

If you're providing an "up-scale" environment and hope to attract more guests of this calibre (I do; they don't quibble about higher nightly rates and rarely cause problems) then I recommend white duvet covers and wash them after each guest.  

Long term I anticipate construction costs will generally soften as the high-rate environment continues and stifles development.

@Mark TaleonCashflow and appreciation in this environment of high interest rates are hard to achieve at the same time.

So I started from scratch 3 years ago and purchased one by one 10 rental single family houses in the last 3 years, all in my 20 miles neighbouring environment upstate NY.

The combo of the current rate environment, the current prices of most properties, and the current rental market makes cashflow much more difficult these days that it was a couple years ago.

Selling can make sense at times, but definitely not in this rate & elevated value environment.

Also installing net is also great for environment.