I found this property while researching land near the water for various Real Estate Clients. This is a surprising value at $119,000 for the land, since the comparable homes in the area are 4,000-5,000 sf and ranged from $1.7-4M.
Granted, some of these were actually waterfront and had their own boathouses, but it gives you a gauge of what could be built on this land near the water. Instead of having its own boathouse, this one has a dedicated slip for $600/year, but you also have access to the community features such as the pool & tennis courts and beach access. As with the large comparable homes in the area, the views of the water & mountains are incredible!
I think the best approach on this property would be to go a little bit smaller at 3,500 sf, but still have three stories to maximize the views. A nice efficiently designed home of that size could be built for about $1,000,000 and your value after it's built would be at least $1,500,000. That leaves you with about $350,000 of equity, plus you would be living in a beautiful new three level home with spectacular views of the water and mountains!