Small lake House - Big Issues, I want it anyway?

5 Replies

Small house on the lake. 50k. Inside needs paint and cleaning. Why is it so cheap? Septic needs replacing. Foundation has several vertical cracks. Been vacant for a lot of years. Because - and only because - the inside is in great condition AND it's 10 min from major skiing, water parks, hiking trails, brewery, wedding venue, Adirondack trail, and some other fun stuff, I am seriously considering it and everyone in my circle is telling me to walk away. I've gotten quotes so I know the dollars for septic and foundation. Wild. My issue is, because I'm using my BP calculators, im seeing as the possibility being beautiful. This would be most profitable as STR. I feel like my naysayers are being emotional and just looking at the upfront costs. I know sh*t always comes up after the fact, but I'm not afraid. I just keep looking at the potential. What would you do? Are you that daring? What other issues can I expect when a septic fails or the foundation needs repair?

Up here the land alone would be worth $50k & you can't get a shack for <$90k.

We have had several local 'shacks' bought & then they built McMansions that are beyond impressive & certainly improve the area. One neighbor recently bought a barn type building that I bet he spent >$90k on rehab/septic/landscaping then another $35k for foreshore reclamation. 

 It took 2 years for the two of us to do a complete rehab, but my wife now has a new 23x13 kitchen that has 22x7ft of window(s) as a back-splash over looking the Lake.

Unless you're ocean side you can't beat the tranquility of a Lakehouse.

Do it!!!

@Chastity Cortijo when I buy a property I work backwards. What will the ARV be when you are all done? If it will be worth 300k when its completed and after all your research and estimates you will need to spend $150k in repairs then its a good deal dont you think? Find out what the ARV WILL BE and then the rest should fall into place. Try to remove any emotion from the deal its business and sometimes its hard to seperate the two when you love a property

Originally posted by @Pat L. :

Up here the land alone would be worth $50k & you can't get a shack for <$90k.

We have had several local 'shacks' bought & then they built McMansions that are beyond impressive & certainly improve the area. One neighbor recently bought a barn type building that I bet he spent >$90k on rehab/septic/landscaping then another $35k for foreshore reclamation. 

 It took 2 years for the two of us to do a complete rehab, but my wife now has a new 23x13 kitchen that has 22x7ft of window(s) as a back-splash over looking the Lake.

Unless you're ocean side you can't beat the tranquility of a Lakehouse.

Do it!!!

Oh man, Pat. You aren't making walking away any easier! LOL 

Wish me luck on my calls and meets this week with septic and foundation specialists. Scary stuff! 

This is the kitchen. 

Not nearly as an impressive as a 23x13 kitchen. But once all prettied up, not too shabby for a little shack.  This place SCREAMS AirBnb. 

Originally posted by @Alex Deacon :

@Chastity Cortijo when I buy a property I work backwards. What will the ARV be when you are all done? If it will be worth 300k when its completed and after all your research and estimates you will need to spend $150k in repairs then its a good deal dont you think? Find out what the ARV WILL BE and then the rest should fall into place. Try to remove any emotion from the deal its business and sometimes its hard to seperate the two when you love a property

Yes! Thank you. That is totally my thinking as well. Here's my conundrum - I have no comps to compare an ARV to. It appears all these shacks - particularly the ones on the lake - have already been renovated and updated for full time living = 3+ bedrooms. We are literally the only 1 bedroom [kind of a 2 bedroom] house ON the lake. So how do I pull a true comp? I can pull 2 bedrooms from off-lake homes. But then how much % do I add for being on the lake? Advice?

@Chastity Cortijo thats a tough one. If there is no way to get a value then you are now speculating on the ARV. When you speculate you are essentially gambling. Now the more experience you get and the more money you have to invest and gamble then speculating is not so risky but given your circumstances just be careful and really try to hone in on a value after repair.

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