We no longer manage vacation rentals but we use to charge 20%, which was on the lower side. 40% is higher than I ever heard of.

I feel like everyone went nuts post covid with vacation purchases and that has to come back to reality.

@Sebastian Bennett It is more so, the seller does not want to deal with the rental leases but was agreeable to vacating one unit because we plan to occupy one of the units (also as part of our loan).

That would require you to buy the next home either as a Second Home/Vacation home or investment home.

Lateefah, Yes, I'm a realtor here in the Emerald Coast, specializing in vacation rentals and investment properties. 

Easy...Vacation Rentals - Suck!

But a vacation rental, you'd better be ready to take calls and handle things at the most inopportune times. 

I am looking to buy again in the next six months.Here’s the situation:I own a home in San Diego, currently worth about $1.05 million once the ADU is built.I owe $680k on the mortgage at 4.25%, with monthly payments around $5,500.The property generates $7,500 in monthly income: $5,200 from the main house as a vacation rental and about $2,300 from the ADU as a mid-term rental.My broker is advising me to do a cash-out refinance and switch to a DSCR loan, then move the property into my LLC.I’m hesitant because current interest rates are around 8%, and I was originally considering a HELOC due to these high rates.Given the high rates, would you recommend sticking with the HELOC, or does the DSCR loan make more sense in the long run?

Most of my guests book well in advance because they are mostly extended families and need to coordinate vacation times, so they're not as worried about last minute accommodations. 

About four years ago, I transitioned all my long-term rentals to short-term and vacation rentals, and it has proven to be the best investment decision I've made.