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Rental spot near off-beach snorkeling, St. John, Grand Caymans or ?

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We're an empty-nest couple looking for a rental location, cottage or condo, near off-beach snorkeling for about $250 to $300 a night, 1 bedroom. We haven't been to either island, so we need help picking areas on VRBO and HomeAway, plus would love recommendations of a specific place to stay. We like good dining nearby, but prefer lower-key areas to something overbuilt. This would be for January/February 2013. Thank you for your help!!

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