A condo complex that would allow short-term vacation rentals in a beach or bay area sounds like a recipe for deterioration in the long run. The type of tenants renting there would drive out the good owner-occupiers, spelling doom for hopes of long-term appreciation. Plus, financing would become less likely, which would really hurt values.
In short, if they would take vacation renters, I wouldn’t buy.
I think it was Groucho Marx who said of a Country Club “If they would take someone like me, I wouldn’t want to join them.”
