Very well put - especially the distinction between vacation homes and second homes! Having owned both second homes and vacation homes, distance is key but not a deal breaker for me because my vacation home is easily reached by airlines and is in a managed rental pool and maintained by a management company. This relieves the distance factor for me because I am not actively having to maintain it but the trade off is obviously not being able to go as often and someone else is using it when you are not there. I have found if you are super passionate about the location/activities to be had where your second home/vacation home is located, it is easier to overlook the slightly imperfect situations you may encounter or certain nagging costs that come with ownership. In the case of my vacation home, a slope side ski property carries the intangibles of having Owner closets to keep your personal items, alcohol, dry goods/foods, guns, ski gear and fishing gear, hiking gear, camping gear so you do not have to lug it around on planes or in your car or have to go shopping as soon as you arrive there. The rental income roughly covers 2/3 of the bottom line costs each year. In all cases of vacation/second home properties I have bought, the appreciation has been off the charts after 7 years of ownership which ultimately makes the bottom line work if you have the extra cash available to sustain and keep them afloat long enough to allow appreciation to build. Again, my approach has always been my passion for the place/activities and I never went into it with high expectations of profit margins, appreciation or financial gain - if any of these happen, which fortunately for me a few of these have ...well great! I have always taken the approach that they would just break even at best and the number of days I stayed and enjoyed the place with friends and family was my profit.