Three-Bedroom Custom-Built Log Home on 20 Acres Near Two Harbors, MN – $350,000
Property Overview
Set on 20 acres near Two Harbors and Minnesota’s North Shore, this distinctive custom-built log home offers 2,286 square feet of finished living space across three levels. Built in 1981, the 3-bedroom, 3-bath residence combines a lodge-inspired atmosphere with generous gathering areas, abundant storage, a four-season porch, and extensive outbuildings.
The main level centers around an open living room with a masonry wood-burning fireplace, open log beam ceilings, and expansive windows. A center-island eat-in kitchen connects with the dining room and flows into the enclosed four-season porch, creating a comfortable sequence of spaces for everyday living and entertaining. The upper level adds two bedrooms and another bathroom, while the lower level provides a recreation room, flex room, utility space, and walk-out access.
Outside, the 20-acre parcel includes level, wooded, and pasture areas along with a detached two-car garage, pole building workshop, barn, lean-to, sheds, and additional storage structures. The property also features a drilled well, mound septic/private sewer system, 200+ amp electrical service, and a metal roof reported as eight years old or less.
Interior Features
The main living area has a spacious 18’6″ x 22’6″ living room with a masonry, wood-burning fireplace and a lodge-style character created by exposed log and beam details. The 14’6″ x 9’6″ kitchen includes a center island and eat-in area, while the 8’6″ x 10’6″ dining room provides a dedicated dining space.
The enclosed four-season porch runs along the home and provides broad views across the acreage. The upper level includes two bedrooms, including a 159.5-square-foot bedroom measuring 11′ x 14’6″. The main-level bedroom measures 8’6″ x 14’6″. Three bathrooms are distributed across the main, upper, and lower levels, including two full bathrooms and one three-quarter bathroom.
The lower level adds a 19’6″ x 14’6″ recreation room, a 15′ x 25′ flex room, and a 12′ x 13’6″ utility room. The block basement includes a sump pump and walk-out access.
Kitchen, Laundry & Appliances
- Center-island eat-in kitchen
- Range and refrigerator
- Dishwasher
- Washer and dryer
- Electric water heater
- Lower-level laundry area with washer and electric dryer hookups
Heating & Fireplace
Heating includes baseboard, radiant heat, and fireplace heat. The living room fireplace is masonry construction with a wood-burning configuration and is also described as decorative and suitable for family-room use. No cooling system is listed.
Land & Outdoor Features
The property encompasses 20 acres with an irregular lot configuration measuring approximately 1,320 feet by 660 feet by 1,320 feet by 660 feet. The land includes wooded and pasture areas, providing a varied setting around the home and outbuildings.
A detached two-car garage includes electric service and is described as heated. Additional improvements include a pole building with a cement floor and electricity, a barn used for cattle shelter and hay storage, a lean-to, workshop space, storage sheds, and other small storage buildings.
Covered and enclosed porch areas provide outdoor-oriented living space, while the acreage offers room for gardening, equipment storage, workshop activities, livestock use, and other rural-property pursuits consistent with the existing improvements.
Structure, Construction & Utilities
- Single-family residence with one-and-one-half-story configuration
- Log and block construction materials
- 1981 construction
- Metal roof reported as eight years old or less
- 761-square-foot foundation area
- 200+ amp electrical service
- Co-op power and light service
- Electric and wood fuel sources
- Mound septic/private sewer system
- Four-inch submersible drilled well
Buyer Area Research
Area Overview
Two Harbors is the county seat of Lake County and a North Shore community on Lake Superior. The 2020 U.S. Census counted 3,633 residents within the city. A City of Two Harbors stormwater management plan describes the community as roughly 26 miles northeast of Duluth and highlights its connection to Lake Superior, outdoor recreation, tourism, and the surrounding watershed.
Sources: U.S. Census Bureau | City of Two Harbors
Safety & Crime
City-level 2024 FBI Uniform Crime Reporting data compiled from the FBI record for Two Harbors shows 21 reported property offenses and no reported violent offenses. The property offenses consisted of 18 larceny-theft offenses, two burglaries, and one motor-vehicle theft. These are citywide reported incidents, not measurements of conditions at an individual property, and small-city annual counts can fluctuate substantially from year to year.
Two Harbors Police Department and the Lake County Sheriff’s Office provide local law-enforcement services. Emergency calls should be made through 911.
Sources: FBI Uniform Crime Reporting | Lake County Emergency & Law Enforcement
Schools & Education
Two Harbors is served by Lake Superior School District 381. The district operates Minnehaha Elementary School for PreK–5 and Two Harbors High School for grades 6–12. The district also serves surrounding communities across a large geographic area of northeastern Minnesota.
Nearby schools are presented here as local educational resources rather than as a verified enrollment assignment for this specific property. Buyers should confirm current attendance boundaries and enrollment eligibility directly with the district before relying on school information for a purchase decision.
Source: Lake Superior School District 381
Healthcare & Hospitals
Healthcare services are available in Two Harbors through Aspirus Lake View Hospital and the Lake View Two Harbors Clinic. The hospital is a critical access hospital with a 24/7 emergency department, while the Two Harbors clinic provides medical services and has pharmacy access. The Lake County community resource directory lists the hospital and clinic at 325 11th Avenue in Two Harbors.
Minnesota Department of Health records also document a 2026 service change involving the Aspirus Lake View Silver Bay Clinic, with future clinic visits, laboratory services, and radiology being relocated to the Two Harbors clinic.
Sources: Lake County – Aspirus Lake View Hospital | Aspirus Health | Minnesota Department of Health
Housing Market History
For a consistent historical measure, the following table uses the Federal Housing Finance Agency’s annual all-transactions House Price Index for Lake County, Minnesota. The index is based on 2000 = 100 and is designed to measure changes in single-family home values. It is a county-level market indicator rather than a valuation of this property.
| Year | Lake County FHFA HPI | Annual Change |
|---|---|---|
| 2021 | 215.08 | — |
| 2022 | 250.01 | +16.2% |
| 2023 | 260.97 | +4.4% |
| 2024 | 275.33 | +5.5% |
| 2025 | 287.84 | +4.5% |
As of August 31, 2026, Zillow reported a typical Two Harbors home value of $295,980, up 5.2% over the prior year. Zillow also reported 57 homes for sale and a median list price of $373,750 for the Two Harbors market at that time. These current market measures cover the broader local market and are not a property-specific appraisal.
Sources: Federal Reserve Bank of St. Louis / FHFA Lake County HPI | Federal Housing Finance Agency | Zillow Research – Two Harbors
Transportation & Access
Two Harbors is connected to the North Shore transportation network through Minnesota Highway 61 and other regional routes. MnDOT is currently planning a major Highway 61 corridor project through Two Harbors, with construction scheduled for 2027 and 2028. The project includes roundabouts, pedestrian crossing improvements, a separated multi-use trail, sidewalk improvements, Park Road intersection work, and connections toward the Gitchi-Gami State Trail.
Arrowhead Transit provides local bus service in Lake County, including Dial-A-Ride within Two Harbors city limits, seasonal weekend service, and scheduled regional transportation connecting Two Harbors with communities including Duluth, Silver Bay, Little Marais, and Tofte. The Two Harbors Airport is also listed by MnDOT at 608 Airport Road.
Sources: MnDOT – Highway 61 Two Harbors Project | Arrowhead Transit – Lake County | MnDOT Airport Directory
Shopping & Everyday Services
Everyday shopping and services are available within Two Harbors. Super One Foods at 802 11th Street provides grocery shopping along with an in-store pharmacy, bakery, deli, banking services, ATM, postage stamps, propane exchange, and other household services. Additional retail, restaurants, banking, fuel, and community services are located throughout the city.
Source: Super One Foods – Two Harbors
Parks & Recreation
The Two Harbors area provides access to Lake Superior shoreline recreation, state parks, trails, and outdoor activities. Gooseberry Falls State Park, located at 3206 Highway 61 East, features waterfalls, Lake Superior shoreline, accessible multi-use trails, and access to the Gitchi-Gami State Trail. The Superior Hiking Trail also connects with the park’s trail network.
Split Rock Lighthouse State Park and additional North Shore recreational resources extend the outdoor opportunities along the Lake Superior corridor. The surrounding region supports hiking, biking, camping, sightseeing, boating, fishing, and seasonal outdoor recreation.
Sources: Minnesota DNR – Gooseberry Falls State Park | Minnesota DNR – Lake Superior Water Trail
Utilities & Connectivity
The property itself is equipped with 200+ amp electrical service, co-op power and light, electric and wood fuel sources, a drilled four-inch submersible well, and a mound septic/private sewer system. These are property-specific features rather than assumptions based on area utility availability.
For broader connectivity planning, Minnesota’s Office of Broadband Development provides an address-level statewide broadband map that can be used to review current provider and service information. Area-level broadband availability should be confirmed at the property address before making service or work-from-home decisions.
Sources: Minnesota Office of Broadband Development | City of Two Harbors
Development & Planning
The most significant current transportation-related project identified for the broader Two Harbors area is the MnDOT Highway 61 corridor reconstruction. As of 2026, the project is in final design, with construction planned for 2027 and 2028. Planned improvements include two roundabouts, pedestrian crossing refuges, sidewalk improvements, a separated multi-use trail, Park Road intersection improvements, and trail connections.
The project is planned rather than completed, so its future construction schedule and individual work elements should be confirmed with MnDOT as the project progresses. The project corridor is along Highway 61 through Two Harbors and is distinct from the property-specific Highway 3 address.
Sources: MnDOT – Two Harbors Highway 61 Project | MnDOT – 2025 Transportation Economic Development Program
Photography is credited to the original photographers associated with the property listing. Ownership credit belongs to the property owners of record. Photographic materials and property information remain the property of their respective rights holders.
Property Summary
| Property Type | Single-family home |
| Address | 2385 Highway 3, Two Harbors, MN 55616 |
| County | Lake County |
| Bedrooms | 3 |
| Bathrooms | 3 total — 2 full and 1 three-quarter |
| Square Feet | 2,286 square feet |
| Lot Size | 20 acres |
| Year Built | 1981 |
| Parcel / APN | 29531004740 |
| Stories | 1.5 |
| Construction | Log and block |
| Heating | Baseboard, radiant, and fireplace |
| Cooling | None listed |
| Parking | Detached two-car garage; heated, electric |
| Additional Structures | Barn, pole building, workshop, lean-to, sheds, storage buildings, and garage |
| Water | Four-inch submersible drilled well |
| Sewer | Mound septic / private sewer |
| Electrical Service | 200+ amp service; co-op power and light |
| Tax Assessed Value | $599,200 |
| Annual Property Tax | $3,014 |
| Date on Market | October 2, 2026 |
View the Listing
Continue to Zillow for the full listing, additional property information, and contact options.
Continue to Zillow — $350,000

