Comparing two lake houses

[Jared Luhman]

I'm curious to hear people's thoughts. I would like to get into a lake house in northern Minnesota as a vacation rental and I'm currently looking at two options that are both about the same price and I want to know which people think would have the best income potential.

Option 1:

$310,000 for a 750 square foot 2 bedroom 1 bath on .3 acres right on a 100,000+acre lake. It needs updating and I have roughly $25,000 to spend which would make it very nice and updated. I could potentially put a small game room/arcade in one area of this house.

Option 2: $310,000 for a 1500 square foot 3 bedroom 2 bath on 1.3 acres on a 50 acre lake about 5 miles from the same big lake option 1 is on. So a much smaller lake but would be good for swimming/kayaking/paddle boarding. It has an attached garage plus a small separate garage/shop. This option is already nicely updated and my thoughts were to use the $25,000 to install a putting green in the yard and turn one of the garages into a nice arcade/game room and also install a hot tub and possibly some other nice amenities

I'm also open to hearing people tell me I shouldn't try either. But looking forward to hearing the thoughts.