A man’s reach should exceed his grasp - unless he’s buying a home.
So If I pay 100 bucks and win the house is it not correct that I will owe federal taxes on the difference between the 100 bucks and the current asking price of 390,000, or in my bracket 35% of 389,900 or a little over $135,000 to the IRS.
Then there are the state taxes.
If you sold it immediately any gains would be taxed at ordinary gains. Otherwise you would have to live there to get the single exclusion ($250,000) or married ($500,000)
If you win you better have the ability to write a lot of large checks.