Example:You purchased it for $200k $99k of the property is building value, $101k is land value You only get to depreciate the building value of only the rental units.

We have very little supply because its an island and there are lots of preservation and ag land limiting the amount that can be built out. 

Then I would be anchored off a tropical island for the next 20 years eating fish and drinking rum....Just kidding I think you have some good advice going here.

Hawaii or off island?

My husband & I have a couple of condos on Okaloosa Island just next door to Destin.If you are going to rent the house out on the short term market there are three options:Manage the house and the bookings yourself ("by owner").

The best financial partner I've worked with is Stacey Deloche Oldaker at Finance of America in Merritt Island. 

You can find some solid opportunities off-island though.

IMO and given the experiences of my investor friends, all of whom have invested either in the Golden Horseshoe, Calgary/Edmonton, Vancouver/Vancouver Island, what I described applies.

We live on Long Island, so it would definitely make for a day trip I know we would enjoy!

I'm coming up from Long Island.