For any commodity market, costs are passed to consumers when demand balances or outstrips supply.

I don't know if that is included in the total rent numbers the owner supplied. 

If you stay in Northern Minnesota you could look to locate closer to Duluth which has a large supply of duplexes at prices much below $500K.

The PE investment feeding frenzy that started up 15 years ago as TOH parks started getting gobbled up is starting to slow as supply tightens. 

I just did a quick search of the area and there appears to be an ample supply of properties with an average rent of approximately $1.10/SF.

Meanwhile, the sellers who are most likely to offer creative financing are normally the owners of  real estate that have issues.....condition.....low barrier/over supply market......or perhaps pricing issue, and one of these factors is why its not marketable in a arms length transaction and why creative financing would be accepted.

With the fires, labor and materials are going to be in short supply.

That usually creates a big supply of rentals on the market that it 's hard to be absorbed and create a race to the bottom in prices, as all the properties are pretty similar and in brand new condition. 

IMO, the best strategy for that type of individual is to purchase residential property in an area they are or can become familiar with; in an area where the neighborhood is “on the rise”, typically where demand exceeds supply and people are spending $$$ on fixing up properties.  

I think in the future you'll see businesses supplying this type of accommodation for their workers.