EVERYONE who bought real estate in the US 7 years ago did great.
I live in Canada. We never had a crash seven years ago. At the time I bought prices were considered to be high. Appreciation has been about average since then, not extraordinary, and I have also improved the property which has increased its value.
That is an aside as appreciation/depreciation is pretty location specific and unpredictable in the short term. Generally not a reason to buy unless you are the gambling type. The questions to ask when you buy a vacation rental are:
1. Does it pay for itself from day 1? If not, you are buying with high risk, particularly if you are hoping for appreciation, and you sure as heck better have the monthly cash flow to backstop it. I won't consider anything that does not pay for itself, including the mortgage principal amount.
2. Are vacation rentals legal here? If not, you could be shut down.
3. Am I prepared to be a landlord for a vacation rental? There are many details to take care of and a high standard to maintain.
4. If I am not nearby do I have a great team of cleaners, managers and maintenance people who are available to assist and have I budgeted for this?