There's never a
yes or no answer to any real estate transaction. One must analyze the deal, know
what to look for, what questions to ask, what market indicators to study and
make a decision based on those outliers. Vacation homes
are typically good investments in warm climates where tourists visit year-round.
Avoid moderate temperature vacation homes unless it’s a known year-round travel
destination (i.e. Denver, San Francisco, New York City). That being said, luxury vacation homes are often less profitable than an affordable 'middle-road' vacation home that many tourists can afford to book for 1-2 weeks at a time.