Vacation rental investment - where's a good location?
We are in the very fortunate position to be receiving a sizable chunk money in the near future ($225k), but it will need to be invested via an IRC 1031 exchange in order to defer a huge tax hit. We are hoping to find a rental property that checks the following boxes:
1. the funds cover at least 75-80% of the initial cost of the home;
2. the home is in a desirable enough area (recreation-wise) that we could rent it out part time to help defray some of the costs associated (taxes, insurance, mortgage, maintenance, property management); and
3. it's within a 2-3 hour drive of the bay area, so that we might be able to use it some weekends too.
So far, we've identified the Murphy's/Arnold area, but would love to hear any other thoughts or ideas about places that fit these criteria. . .if there are other criteria that we should consider, we'd love to hear those too.