It is desirable in the summer for lakes and outdoor recreation and Silverwood Theme Park and in the winter for skiing and snowmobiling. 

How much more desirable is it if I add a kitchenette (sink, food prep area, two burner stove) and on-site laundry?

Maybe this is just me, but I desire going on vacation in secluded areas (at least, from other people).

Quote from @Leo Hunter: Succubus, demons that stir desire.

What would you do with $60K and a strong desire to get into real estate investing?

I can give you suggestions on certain neighborhoods that are highly desirable for vacation STRs.

The house is older and likely would need upgrades and repairs to get into a good shape, and the neighborhood is not very desirable.

I'm not sure if a home on piers is more desirable or not. 

I live in Charlotte, NC and think there are many opportunities here especially considering we are having migration to the area and it is a very desirable place to be while still offering affordability. 

“San Diego will not be immune to forces slowing the housing market nationwide; however, strong job growth, constrained supply, and desirability will help San Diego weather the storm better than most markets across the country.