Under contract on a riverfront home with serious septic constraints — rational short-term hold or capital trap?

Considering a short-term hold on a unique property with major septic constraints — looking for investor perspective.

https://www.zillow.com/homedetails/3697-River-Rd-Lumberville-PA-18933/9094595\\\_zpid/?utm\\\_campaign=iosappmessage&utm\\\_medium=referral&utm\\\_source=txtshare

Looking for objective input from investors who’ve dealt with non-standard properties and lifestyle-driven buys.

We’re under contract on a riverfront home in Bucks County, PA for $650k. The setting is exceptional (quiet river corridor, strong schools, close to family), and we’re considering it as a 2–3 year owner-occupied hold / lifestyle play, not a long-term rental or forever home.

Part of the motivation: we’re relocating for the school district, to be closer to family, and we have two very young kids (both under 2). So there is real non-financial value to the move — but I want to pressure-test whether the asset side still makes sense at the price.

The big issue is septic, and I want to be very clear-eyed about the risk.

Property & septic details:

• \\\~0.17-acre lot in a river corridor • 3-bedroom single-family home • Older septic tank discharging to a single seepage pit / cesspool • No conventional drain field • Prior owner (2 adults) reportedly pumped every 6–8 weeks for \\\~2 years • Property previously went under contract around $750k and failed due to septic • Local inspectors indicate a fully compliant replacement system is likely not feasible due to lot size, setbacks, and environmental constraints • Any engineered replacement would be very expensive (six figures) and uncertain • Realistically, this is a managed system, not one that can be “fixed” 

Our plan (if we proceed):

• Owner-occupied for \\\~2–3 years • Budget for frequent pumping and active water management • No expectation of “solving” the septic • Full disclosure on resale • Target resale to niche / cash / weekend buyers 

What I’m trying to understand from an investing lens:

1. Does buying at $650k reasonably price in the septic risk, given a prior $750k failed deal? 2. For a short hold, is this more like “renting lifestyle value” with capped downside — or a classic capital trap? 3. In your experience, do properties like this remain liquid at the right price, or do they become resale nightmares regardless? 4. If you were underwriting this strictly as an investor (ignoring lifestyle), what downside would you assume over a 2–3 year horizon? 

Not looking for reassurance or emotional advice — genuinely trying to decide if this is a defensible, knowingly imperfect investment, or something investors would universally avoid.

Appreciate any experienced perspectives.

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source https://www.reddit.com/r/RealEstate/comments/1qhzn5d/under_contract_on_a_riverfront_home_with_serious/