I'll lead with the question.  I think I have finally found a deal good enough that even I might jump at it.  My question is that I have no idea what I'd do with the place. Flip it?  Air BNB it?  Rent it some weeks in summer and vacation there, hoping it appreciates?

By way of background, I've been looking for a deal for some time.  I've been looking at all sorts of deals, some that BP folks have offered.  I don't have a single-focus strategy.  If I can rent and cash flow a duplex, great.  If I can buy a place in a great neighborhood that needs some work at a real low price, fine. Improve it and sell or rent it, I'm not picky.

Anyway, I came into the following, which is, (I think) by far, the farthest below market value deal I've come into, and I wanted to get thoughts from folks smarter and wiser.  If you have experience with waterfront property, esp in this neck of the woods, I'd be grateful for your thoughts.

Basics are that it is a ~950 square foot home / cabin near Dyckesville, WI, about 1 mile north of Bay Shore Park.  It has ~80 feet of frontage on the Bay, facing west (full sunsets).  It's not a traditional cabin, because it has a stucco exterior and is in better shape / is larger than most of the "cabins" in this area.  Details:

950 sq ft

3 bed

1 bath

open family and kitchen with fireplace.

new windows throughout ~4 years

newer roof  -- 4 years

Wall of windows facing the Bay that are impressive for a home of this size, price. 

Not sure on electrical, assumption is it is old.  Same with plumbing.

Kitchen is not much to look at.  

No basement.  I believe there is a crawl space, but I'm not even sure on that bit.

No garage.

The exterior was re-stuccoed about 5 years ago.  It is structurally in great shape.  

It's on a well shared with the neighbor. This concerns me but my parents (and other family) live very nearby and indicate shared well is very common here.

It comes with a decent dock.  It is at a part of the Bay that does not have sandy beach frontage.  It has a nice yard on the water but the water comes up to the retainer wall, no beach.

It's been told to my family the long-time owner wants to sell.  He has a preferred price, but I believe I can get the place for $120k.  There are other comps on zillow that are not nearly as nice for $139k - $159k (2/1s that are nothing more than basic cottages).  A home 4 doors down with almost no frontage, that is 2 bd / 1 bath (extremely small, like 450 sq feet, but very well done) sold from one friend to another about 1 year ago for $110k.  

I've only seen it through the windows, but I know this type of place and this area extremely well as I grew up on the Bay, family lives there, etc.  I'm positive that for $10k and some sweat equity the place would look pretty amazing.  However, it will always be limited by its size, its lack of good closet space, etc.

One issue that is odd to me is that the electrical panel is on the wall in the kitchen.  Is that weird?

So, BP, please help me.  Am I crazy to be thinking about this without any plan?  Any ideas on what I should be with it.  Anyone know what this would rent for if I just straight rented it?  Anyone point me to anything more than just general Air BNB discussion?