Rising prices suggest that investors have a better shot at recouping their cash—and possibly turning a profit—if they suddenly have to sell.There are other potential drawbacks.

A normal year sees both supply and demand begin to rise sharply in early January, and then reach a peak in late May.

Shoot for a higher monthly net, everyone is right that wont go very far when taking into consideration vacancy and repairs.   

There are certain markets where the overnight rental market is strong enough that an appraiser MAY consider income as a consideration in value, but that would also depend on the loan the buyer is obtaining.  

The tide is definitely rising in New Brunswick (That's a pun directed at the Bay of Fundy) but it is still possible to find good deals.

Aside from these considerations, would managing a vacation rental from 120 miles down the road be exceedingly difficult?

Also I never listen to "rents should/could be more" , I base calculations only on current rents or in quickly rising rental markets previous years rent rates

I'm seriously taking into consideration doing this type of project as well if the price is right, and if I can land a deal on a lot of land here in Denver. 

Thats a 23% rise in rates.From what I have read about real estate, interest rates are one of the few major factors that affect real estate markets. 

If someone with a million dollars asks a bank for a loan, they get more consideration than someone with $10.