In my opinion properties well suited for vacation rentals have:A great location for touristsNear outdoor / recreation destinations (beach's, ski resorts, etc.)Near nature (on a river, lake, ocean, etc.)Or perhaps a great location for business / corporate housing (Downtown, near major companies, etc.)Decent demand year-round (If it sits vacant 40 weeks out of the year you would be better off with a long-term tenant).Great amenities (WiFi, TV, Furnishings, Linens, Coffee, small appliances, etc.)Accept credit card paymentsPool / Hot Tub is a nice bonusOutdoor space at the property (Deck, balcony, patio, BBQ area, etc.)Pet friendly (not required, but will get you more interest)If your property seems to meet many of the above characteristics it is probably well-suited for a vacation rental.Some major differences you will need to figure out (compared to long-term)Who will do routine housekeepingHow will you get the guests moved in and out (lock box, in person, etc.)What laws govern your locationsWhat tax implications (bed tax, reporting, etc.) will you have to figure outHow much extra will you need to charge to make all the above worth it.

I apologize if this seems like a redundant question, I honestly just don't know what type of income I would need to get a loan for stay a single bed and bath unit.

It's about 980sf 2 bed 1 1/2 bath on a 4,200 sf lot. 

You're looking for properties that have a similar size/bed/bath that are close to the home and have sold within the last 6 months.

If your property has had a bedroom added after the septic or you plan to add one, you better check with local municipality about what they will allow (permit) and check to see what size tank it is, if that tank will accommodate more beds. 

Anyways, we found one for sale in our small town, and the general details are below:Asking price: $275,000Expected first year improvements: $7000Year built: 1985Unit detail: 4 apartments, 790sf each, 2 bed/1 bath, individual heat pump and exterior storage closet (unfinished), electric stove and refrigerator included, washer/dryer room w/ hookupsTotal finished area: 3140sf on .22 acres w/ paved parking lot and sidewalks, 2-story buildingRentEach unit is currently rented with tenants ranging from 20 years of tenancy to 3 years. 

If you are just looking in one area, start making of spreadsheet of what houses have sold for, how many beds/br and the sqft. 

Its a 3 bed 2 bath 2 story.

Like a bed and breakfast.

Bed, Bath, Basement, Garage, Construction)What is important about this to you?