Renovated 1915 lake home that was part of lumber baron's Wisconsin estate listed at $996K

Michael Klutho loved waking up in his cabin on a Wisconsin lake so much, he purchased another one nearby to lease out to other Minnesotans needing a break from the hustle of their daily lives.

At the time, the home was in need of repairs, and the lot itself was so overgrown, Klutho didn't even know there was a house there until he saw a "for sale" sign perched on the property's pergola overlooking the lake. But the history is what swayed the St. Paul resident, as lumber baron Frank Stout had built the home in 1915 for his gardener.

"My wife and I just fell in love with it when we toured," he said. "I said, 'OK, sign me up.'"

Klutho estimated he's put in about $600,000 worth of renovations and updates since he bought the house in 2013 for about $250,000. The house spans 3,240 square feet, with five bedrooms and three bathrooms. Along with the house in the same listing for $995,950, he is also now selling a small cottage on the 1.4-acre property that has another bedroom and bathroom.

The couple had rented the "bed and boat" out to vacationers since 2014, calling the home "Pine at the Lakes." Klutho said it was usually booked through the summers, mostly with repeat customers, and after expenses, it generated around $25,000 a year.

The property has seen weddings and large get-togethers throughout the years and was also a popular destination during school breaks.

The sale includes all the furniture, a dock, pontoon and pre-bookings of people interested in renting the home next summer, if the seller wishes to continue the business.

"When this became available, the price was good, and it was a fun project. I didn't realize this was going to cost me $600,000, but it is a worthwhile investment," Klutho said. "Now we have two grandkids, and my wife and I are retired and traveling a lot more. ... But now it's a fun project for someone else."

History and architecture

The home was formerly part of the Stout estate, built with the wealth accrued mainly from the family's northwestern Wisconsin timber holding, according to the Stout Island Lodge's website.

Frank Stout lived on Stout Island in the middle of Red Cedar Lake — about a 2½-hour drive northeast of the Twin Cities — and kept the mainland house for his gardener's accommodations. After Stout's death, the family gave the property to the gardener.

Given the house's original owner, the home sported only the highest quality lumber on the market at the time, much of it sturdy old-growth trees. Today, that timber is rare, but Klutho was lucky enough to purchase similar wood that came from an old barn, repurposing it for a sauna he is building in the basement of the house.

"The grain and the rings, they're all much tighter," he said. "It's structurally a better wood, and that's why people like to use it and repurpose it."

There's the original Douglas fir floorboards that don't squeak and are level despite the home's age. Plus, the basement still has the home's original concrete foundation, another uncommon characteristic with older homes, he said.

"I could see the house was structurally sound," Klutho said of when he first bought the property.

Klutho's first project on the home was to replace the roof, which he estimated cost about $40,000. Then he replaced all the plumbing, wiring and installed new septic.

He expanded the main level floor bathroom by taking out a walk-in closet, and added in heated floors, a claw tub and new fixtures. Then he put in another bathroom in a space previously used for firewood storage.

A room originally made for storing ice became a bunk room, and he added a Murphy bed in an upstairs bedroom.

Even with all the updates, there's still room for expansion, Klutho said. A breezeway that connects the western side of the home with the main side has a hidden room on top of it only accessible through one of the bedrooms.

"It's just dying to be developed," he said.

The property has 200 feet of shoreline on Red Cedar Lake, which stretches 1,900 acres and connects to two others. There's a good stock of walleye, smallmouth bass and perch. And nearby, there are trails for ATVs and snowmobiles.

"You name a recreation, it's here," Klutho said.

Michael Klutho (612-875-8014, mklutho2801@gmail.com) has the $995,950 listing.