Properties in popular vacation areas usually tend to see higher than average appreciation, so there may be a time when youwant to cash in and find a new place to stay.
But since the first dollar converted in 2012 will be taxed at the 33% rate, the hurdle for that first dollar is at least 17.9% appreciation by the time you need to decide if youwant to keep it or unconvert (recharacterize) it.