Buying a Waterfront Second Home in Another State

Soon after making the Chicago area home, my dream of buying a waterfront second home became a top priority. As and avid fisherman and professional who has a difficult time winding down (even on vacation), a place of my own on the water has been one of the best investments that I have made.

Outlining priorities for your waterfront second home search

In this case, location, the lot and surrounding area were the most important factors in deciding which property to purchase. Our must haves included:

• a wooded lot with some seclusion
• a minimum of 100′ water frontage
• a clear and deep lake with a sandy bottom
• a mid- to large-sized lake (targeted 400 acres) for motorized activities.

We also targeted a property within a 3-hour drive of our home. We hoped to find a vintage cabin built circa 1960’s or earlier, but this was a secondary consideration. Our budget was $200,000 to $250,000.

Sounds simple in theory. In the end this was a difficult task, especially when searching for a waterfront, second home in another state. We spent many weekends and vacation days search for and visiting cabins in Michigan, Illinois, Indiana and Wisconsin. The most important recommendation I have for you in your own vacation home search is to:

• understand what is important to you
• prioritize your needs
• have a firm understanding of what features are a ‘must have’ and where you are willing to compromise.

It is also important to select a real estate agent who is clear on your priorities and respects your needs and wishes. Years could have been shaved years off of our search if we completed a checklist, like the one provided, prior to working with an agent and visiting properties. This list will certain evolve as you progress with your search, but I certainly recommend you start here as you begin with your efforts.

Making sure you stick to your search priorities

After many years of searching for our waterfront dream property, we became impatient and nearly compromised our priorities by selecting a vacation home based on the cabin itself and not on the waterfront setting. From the 1930’s to the 1960’s Trump Lake Lodge was a thriving summer camp for boys aged 7-17. The main lodge was on a 110 foot waterfront lot and was of log construction. It boasted a large great room with an imposing field stone fireplace. The other highlight was the largely original kitchen. Specific features included an intact wood-burning commercial oven, floor mixer and slide through dish washing line. The lodge maintained many original features. It was also in need of some fairly significant repairs including a new roof and external log restoration.

We were within a week of making an offer on the Trump Lake Lodge. This purchase would have been a mistake and major compromise of our priorities. Although we made the right decision, I do regret not taking on this project. The lodge itself was definitely a masterpiece to protect for future generations.

Finding our perfect waterfront second home

With a stroke of luck, our current cabin came on the market just prior to us making an offer on Trump Lake Lodge. Blue Lake, located in Minocqua, WI is a 441 acre lake. It has a maximum depth of 49 feet and a predominantly sandy bottom. Blue Lake is spring fed with unmatched water clarity. It is also one of a select few lakes in Wisconsin with no public access. This keeps boat traffic manageable even during the busiest summer holiday weekends. The lake boasts trophy small mouth bass fishing and a recently reinvigorated population of walleye.

We found Lake Link to be an excellent resource during our search for the perfect waterfront vacation home. Blue Lake was certainly high on or wish list. My wife was very familiar with the area. Her Aunt and Uncle owned a lakefront cabin in Minocqua for over 40-years. While we loved the lake and area, the challenge with Blue Lake was the high price point. It was unusual for home to become available for under $300,000.

The property we purchased was a foreclosure requiring some risk and updating. We drove up to view the property and submitted an offer within three days of seeing the listing. The circa 1950’s cabin is 1150 square feet. It has three bedrooms with one bath, boasting a ledge stone fireplace and original wood flooring and pine paneling throughout. The other big upgrade on our original list of priorities was an over the water boathouse. Several local construction experts told us the boathouse was in tear-down condition. That being said, we were determined and were able to undertake a boathouse renovation project to return it to its former glory.

Investing in a second home

We have learned an important lesson fromn several of our past home purchases of historic homes. Sweat equity is more often that not the key to a good, long-term investment. Our cabin is a prime example of this. To date, we have completed the following projects:

• boathouse restoration
• mud-room addition
• exterior re-model
• gut renovation of bathroom.

Remaining projects on the horizon include:

• kitchen upgrade.
• garage addition with second level guest accommodations.

Love our vacation paradise and plan to spend summers in Northern Wisconsin in retirement. We have certainly done a lot of work one Blue Lake. We have also enjoyed a fair bit of rest and relaxation (and a few fish). Most importantly we have experienced some great times and have created lasting memories with family and friends.