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Coach
My vacation rentals are doing excellent but mine are high end homes on the ocean/bay. I can’t speak to pre fab tiny houses on lakes. Do some research to see what rates places are getting and see if they’re already booked for peak season.
Also do lots of research on current STR regulations or regulations in discussion within the area.
Depends on location of course. The Great Lakes have a lot of cheaper land available because nobody goes there and there's little to do. If it's not a destination area I'd urge caution.
Love it, love the location
Coach
Depends on where on the great lakes. New Buffalo, MI? You can rent that all day long. You may have a harder time in Tolsmaville, Ontario. Also where you are will indicate whether a tiny house format would be successful. Some areas are for big family gatherings, other areas are for couples getaway for outdoor activities. More information needed.
Subject Expert
The 3 most important factors in real estate are location, location, location!
That being said, vacation properties can work well if the location and/or the experience are unique. I couldn’t tell you how tiny homes on a lake in your market would do, but if there’s little competition in the sector, it might work if you operate it well.