Alright – so today we’ve got the honor of introducing you to Addie Wales. We think you’ll enjoy our conversation, we’ve shared it below.
Addie, thanks for joining us, excited to have you contributing your stories and insights. What were some of the most unexpected problems you’ve faced in your business and how did you resolve those issues?
When we first bought Ely Log Cabin, we weren’t planning for it to be a rental. If we had known it was going to be a rental, we would of planned further ahead. We had a few major upgrades that had to be made in order to rent out the cabin legally:
Well
Solar System
Septic System
Driveway Upgrades
If we were planning ahead, we would of worked these big ticket items into the loan. We ended up paying for them out-of-pocket, which tied up all of our cash reserves that we could of otherwise had available for scaling our business.
After installing all of these systems, we had a few unexpected problems like freezing water, not enough power from the sun in the winter, driveway washing away from rain in the spring.
We had a few very stressful maintenance needs that were logistically challenging to address because we don’t live in town and the cabin was also being rented out to guests. For anyone thinking of managing a remote short term rental, I’d advise having local contacts and experts that can handle all of your maintenance needs.
As always, we appreciate you sharing your insights and we’ve got a few more questions for you, but before we get to all of that can you take a minute to introduce yourself and give our readers some of your back background and context?
I’m an entrepreneur from Ely, MN. I’m a marketing expert, yoga teacher, real estate investor, and designer of unique spaces.
I purchased Ely Log Cabin in September of 2020 and started hosting in May 2021. I quickly realized that I had a passion for the entire process: designing spaces, DIY renovations, creating an experience, making people feel welcome and special, providing local recommendations, collaborating with locals to provide unique art, treats, experiences and more.
I loved the process so much, that I decided to expand our business. We’ve added two more cabins to Ely Cabin Collective:
The Dove Tail Vintage Tiny Log Cabin: available summer of 2023
The Aurora Modern Cabin: available December of 2022
Can you talk to us about how your funded your business?
We took out a second home mortgage for Ely Log Cabin. The local credit union had no problem approving us for this loan.
We paid for the Dove Tail renovation out of pocket. It was under $10,000.
We got more creative with the funding for Aurora Modern Cabin. We didn’t have the money for a down-payment. However, my dad owned a piece of land that we wanted to build on. My dad put in the land as the down-payment to the local bank. In doing so, my dad has 25% equity in the business. The bank loan is a construction loan for the first year, only paying interest. Once the cabin is done, we will convert it to a regular mortgage.
If we decide to build additional cabins, I image we will refinance and consolidate our loans. We may even be able to use the equity in Ely Log Cabin as a down-payment for a 4th cabin (cash-out refi).
Any insights you can share with us about how you built up your social media presence?
I worked with a ton of influencers and invited them to stay at the cabin for free in exchange for posting.
I also hosted several giveaways (in conjunction with influencers). I asked people to follow us for a chance to win a free stay.
I also tag all of the smaller niche accounts (@boundarywaters_minnesota) and huge cabin accounts (@thecabinchronicles) and have been reposted a few times. I never pay for posts on big accounts. The more local, the better for this type of business.
I also make reels regularly and have had a few go viral.
Contact Info:
- Website: www.elycabincollective.com
- Instagram: https://www.instagram.com/elylogcabin/ and https://www.instagram.com/elycabincollective/
- Youtube: https://www.youtube.com/channel/UCgNZBjJk-T9PO1N2yP6imxw
Image Credits
@Katrinab_photography @buzzthemuddypyrador