All Forum Posts by: Bradley Eischens

Russell, first off, I love tiny homes. Having designed, built (everything DIY), lived in for two years and still own a tiny home, I really like this idea and have thought about it a few times. What is being described is essentially rebranding a resort. Instead of using the words cabins and lodge, you're saying rustic tiny homes and venue. Mount du Lac Resort has a bunch of these mini cabin/tiny houses right at their ski hill in Superior, WI.

It's good you got the county involved so you can bounce ideas and desires off of them early. Note that as you get closer to the twin ports/cities/towns you start to have to deal with their jurisdictions, as well as those set forth by townships but I'm sure your aware of this as it is listed on the STR page on the county website. I wrote about it in another post a while back about STRs in/around Duluth.

As far as costs, Tiny Homes are a bit odd. You have to meet building code requirements in a tiny envelope so economies of scale don't quite work out for single units. If you build 30 of them on the same property, you could centralize many of the services which would help reduce costs but if you can't, each home would require all of it's own utilities. Well, sewer, electric (meter, panel, etc.). The tiny house community has done a good job of rebranding trailer houses as tiny homes on wheels but after staying in a few trailers, I would stick with permanent foundations in order to create a better product and get a firm hold something that goes up in value. 

I like the smash burger bar idea. If I could add two cents to that jar I would look to pull something local in, especially if you're near Duluth. Duluth is a very 'local-big city' as in, the people love and support craft districts and purely Duluth things. Duluth Grill, Love Creamery, Bent Paddle, Grandma's, Duluth Pack, etc. are typically far busier than Cherry Berry and Crooked Pint. Having a Duluth-esk experience would help draw people in. I'd recommend 'King of Cremes' in Duluth for smash burgers. Here's a copy of many of my local favorites: Local Duluth Map. If you're looking towards Ely, in the 9 years of living in Duluth, I went to Ely once but I went up the north shore countless times. That is where the majority of the people are going to be who would keep your occupancy rates up throughout the entire year. 

Anyhow, if you have any questions or need to pick a brain, shoot me a DM. If I don't hear from you, good luck with your project! Lots of work ahead!

Hi Micah,

There are lots of variables here but this is what I know. I have lived in Duluth since 2014 and have seen quite a bit of change over short term rentals. The City of Duluth just approved of a new STR ordinance in October 2021 which is now more in your favor but that ordinance is for within city limits and it would be hard to find 10 acres that would make the financial numbers work there for a small house/cabin. Unfortunately you're a little late to get in on it, but Duluth did break ground on a tiny house development project in the summer of 2021 that awarded free lots to contractors to build the structures on and they might do it again in the future, so might be something to watch out for.

If you're looking outside of the city and up the shore where most of the tourism occurs, you might be able to find something more "affordable". When you get out there though you will have to look at county/township ordinances and codes. Which sometimes can be more stringent than Duluth, as in the case of Midway township where I live. See this map to find out who you'd be dealing with and look up their ordinance for info. If you get further up the shore into Lake County, they recently went to classifying STRs as commercial properties which make things a bit more convoluted. 

As for building costs, it is hard to say what materials would cost and are going to cost in the future plus all the variables of DIY vs hiring everything out. I can say from experience in rural St. Louis County you can expect a mound septic system (mounds are required) to be about $20k for a 3 bed house (just did one last month) and a well to be at least $10k depending on how deep you need to go, soil types, etc. Then I'd add $7-10/per foot (typ. around here) for any underground electrical/internet cables, if you run them in the same trench, otherwise overhead is cheaper. Then you'd be getting a rough idea of how much the property would cost before you even broke ground on the structure. If you planned to expand on the lot and build more than one structure it'd be you might have to build another system to support it. To save on costs until you know if your STR would be viable is to install a holding tank with a pumping contract and then convert it into a septic later.

All in all, I do feel the area offers great potential for STRs and I plan to rent out the tiny house (not on wheels) I built and currently live in when I move. The hardest part will be figuring out what you can and can't do on your property, which if you are familiar with construction, is nothing new. As with anything, I'd recommend watching the area for a while until you find a good deal before jumping in. I have seen some very over priced properties with acreage in the area over the past few years but every once in a while you will find a gem. One good option to save on acreage purchase I have seen around here is tax forfeited vacant land, they can be found on the county websites. 

Hope this information is helpful. Good luck to you.

-Brad

I found this the other day and thought I should share it before it goes away. This boat is a decommissioned 81-ft tug boat known as Miss Laura with sleeping quarters and a kitchen. With some elbow grease and a bit of work it would be a great Airbnb. There is a similar boat docked in the Superior Harbor. (https://www.airbnb.com/rooms/4...) If no one is interested at least it is something interesting to look at. Only available until Friday, September 4th! 

 https://minneapolis.craigslist...

@Brandon L., thanks for sharing the articles! They offer some great info. I especially liked the "advice would be appreciated" article. I fall in line exactly with Gary Keller's words of wisdom. My last 2 months have seen at least an hour every day of reading and listening about real estate, taxes, financing option, business systems, and anything else that could relate to the real estate business. I also set savings goals to help fund my first deal and when I will be taking action on that deal. I have just began the networking part, now that I have a better understanding of the market.

Again, thanks for the articles, I really appreciate it!  

Thanks @Sam Torvinen! I'll be sure to hit you up once I make it back! 

Thanks @Brittany Kuschel! Once I get back to Duluth here in the beginning of November, we'll be in touch. 

@John Lambert Thanks John! I think there are some great ones there as well. Going to have to start driving around the neighborhoods over there and figuring out which ones are the good ones. 

@Michael Schraepfer Thanks! That would be great! I've seen Heirloom while I have been analyzing deals in Duluth. I really like your website, it's very easy to work with and looks great! Is that all custom coded or did you use a software? 

Hello everyone! As my profile says, my name is Brad Eischens and I am a Newbie of Duluth MN. I have never done a deal but over the past few months I have done nothing but learn about real estate investing. My daily 120 minute commute has been filled with BP podcasts and any book I can find on youtube. As with many people, my spark came after reading Rich Dad Poor Dad and I'm glad I did. I'm currently in the process of moving back to Duluth as a career change. I used to live in the beautiful city while I attended UMD for Civil Engineering and can't wait to get back. I currently am looking to build capital to put towards my first deal in the spring. I want to buy a SFH or small Multifamily and rent out the rest. I still have friends in college and my girl friend still has two more years of schooling for her master's degree which makes finding tenants fairly easy. The reason for me wanting to do REI is to be able to achieve financial freedom and do what I truly want with my life.

During my free time, I love spending time outside. I have never been one to play video games or binge watch TV. I like fixing things, building things and just being useful. If you have any suggestions for me as I get out the gate in this real estate investing adventure, I'd love to hear them. Also, if you're from the Duluth Area and would like help with ANYTHING, let me know. If you check out my bio/linkedin you might find some experiences that might be useful. If not, I'm very eager to learn and lend a hand! 

Thanks for reading!