To beat the chilly, rainy winters in Portland, Ore., Verle and Carolyn Grove hop a plane to Hawaii each year - using their investment real estate to help fund the escape. "We've been vacationing in Hawaii ever since we were married, and we always talked about buying a place there," Verle Grove says. "We wanted a place to stay when we're there, and we also wanted an investment, a place for short-term vacation rentals, to help offset the cost of owning a condominium in Hawaii."
In 2003, the Groves paid $500,000 for a two-bedroom, two-bath property. In 2012, they bought a second property in the same community, this one with a single bedroom and bath, to allow for more flexibility when family and friends visit and to take greater advantage of peak rental periods, which in Hawaii are from December to April.