Expectation of 20% CoC for STR and Turnkey: Should I walk?

[Autumn G.]

I'm under contract to buy my first STR, and the house didn't appraise. The seller has dropped the price to $1500 over appraisal, so at this point we can accept or walk. They're selling the house fully furnished, including a little fishing boat - hence the $1500 over appraisal 🙄

As you can see from pics, the house is a small lake house, in good condition, but everything is original to the 1970s. It's on a great recreational lake, in a rural area not far from where I grew up (albeit 1000 miles from where I am now). After going through inspection, it's in good shape, but I'm calculating 60-70K in improvements to bring it into 2023. It could use some higher dollar upgrades in addition to cosmetic to maximize STR potential. Ie HVAC, finishing part of walk out basement to add bedroom, new windows. This is more work and cash than I initially expected.

My Dad lives in the area, and is happy to help out with finding and meeting contractors for a remodel, generally help out with checking on the property but I have some apprehensions that it seems like a lot to coordinate remotely, and a pretty steep learning curve for a first timer.

The deal also isn't a slam dunk money maker, with just 2%-5% COC return as an average-high producing STR in the area, but part of me wants to move forward just to " get started" on my STR journey. Simultaneously, I don't want to make a poor financial decision. I know several STR influencers say they won't look at a property for less than 20% COC, which this definitely doesn't meet.

Am I forcing this deal? Should 20% CoC be my expectation? Should "turnkey" be a remote STR requirement, particularly for a newbie?

Would you walk? Go with the 70s vibe and skip the kitchen remodel and appliance replacement etc?