A STR vacation rental in national park in WA

[Eric Huang]

I came across a property in a popular vacation spot in the Olympia national park. The property is half block away from the water with a nice lake view from the backyard. The house has a main structure about 800 sqft (2b1b), a separate storage space 600 sqft (potentially converted to livable space in the future), two-car port and an old barn space (a potential indoor rec space). The property lot has two parcels with a total of 12K sqft and only one parcel is currently occupied. I ran numbers and it seems very promising. Asking for $290K, expected the total revenue of $64K per year (with 55% occupancy rate based on airDNA data) for the main structure only. I may need to put $20K upfront to refresh the house. The average monthly expenses is estimated to be $2300 per month, including expenses such as cleaning, maintenance, insurance, CapEx, landscaping, utilities, internet, management, etc. Is it sufficient? On top of that, there is about $1100 mortgage given 4% rate and 20% down. 

(courtesy of a bigger pockets member for creating the Vacation Rental Analyzer - Cash Flow Analysis)

However, the water supply to the property is from a well and shared with other 3 neighbors. And the water rights belong to one of the neighbors. Although the owner mentioned said they have no arguments in the last 35 years, it sounds risky to me to run airbnb business on it. And because of water supply issue, the bank will not able to loan it. But the seller is willing to offer a 30 year at 4% loan to the buyer. To resolve the water supply issue, I have to put a well, which may cost $15K roughly? I have no prior STR experience. Is it worth considering the property?