My parents own a lake cottage in Michigan that I’ve turned into a short-term rental.

We're about 1 mile from the lake and the feasibility studies look great.

In Bryson City you have a popular tourist train (GSMR), one of the largest casino's in the Southeast, the Nantahala Outdoor Center, the second largest lake in NC, and some of the most notorious fly fishing rivers in the US. 

We are paying $13K per year for two lots on Lake Placid in McQueeney Texas that are worth about $1Mil combined and the dam is broke so we haven't had a lake for over 3 years....  

With a 5% vacancy rate, investors are finding strong opportunities here at more approachable price points compared to some of Charlotte’s luxury zip codes.28078 – Huntersville | 8% VacancyHuntersville remains a family favorite thanks to Birkdale Village, Discovery Place Kids, and proximity to Lake Norman.

You can create wealth with either approach but both approaches are more challenging than in the recent past.At this point I mostly seek highly desired property locations such as beach or lake front, Mountain cabins, bonus if they are near a destination such as national park of monument or other tourist attraction, etc.

So there's this lot on a lake.

I'd guess the subsurface is solid rock or such hardpan it just doesn't percolate at all, or they're right on a lake, or they were just too cheap to put them in. 

There's boat access to Lake Livingston in the neighborhood and only 5 to 10 minutes away from the waterview.

I think in most markets, 3 nicely appointed modest properties will perform over the long run better than a big fancy one.If I had my choice, I would have 3 lake houses like I have now rather than a single lake mansion.