foreclosed lake lots help

 An investor tried to make money off this lake property, but he bit off more than he could chew.  The bank foreclosed on it.  One investor bought a phase I development and has fixed it up.  They're asking 500k for the phase II, but I can probably get it for 300k.  Judging from the numbers on the phase I investor, it would cost about 50k to get everything in order.  There are 8 lots, 5 have deeded waterfront access and dock permits.  I could make the 8 lots into 5 and possibly sell the 5 lots for 119k a piece.  The only real estate deals I've ever really done have been bird dog related, but I think i can do this.  Who knows, maybe the phase I investor will show me the ropes.  I just wanted to know your thoughts on this deal.  Thanks for all your help.
     -David