However, challenges include a limited rental pool, lower rental rates, fewer amenities, and a potential for higher vacancy rates.

@Sathya Ram  in communities with amenities like a beach often you have to show residency to get a season pass to enter the beach.

Then making sure you have all the amenities that other neighboring similar properties are offering.

Even if there is saturation  in your area you can still stand out by having a great property in a great area with great amenities and great views. 

Asset: SFH (9 bedrooms and 7 baths)City: Orlando, FL (Kissimmee) Purchase Price: $925K --> A similar house in the neighborhood just sold this week for $1M and has one bed/one bath less and fewer house amenities. 

It is a unicorn in the sense to find a house that close to the beach at that size and amenities is not easy to find even paying retail, but not impossible.

A host with higher reviews and more amenities and fewer requirements (like requiring the guest to load the dishwasher and strip the bed and take the garbage all the way Detroitto dump it) will get more profitable bookings.

If the numbers don't make sense, you move on to another property and do the numbers for that one.Remember that each location, each type of property and each level of amenities bring in a different nightly rate and occupancy rate.

I just stayed in an awesome STR in VA, it literally had part of the floor in particle board (but done in a way as to be sorta artistic), never gave the floors a second thought because everything else was so well done, all amenities, etc. 

I have two very similar pool cabins, similar in size and amenities.