Jenny,

Youv'e probably already purchased and closed as I see this post is old, but I still think it's worth saying when ever you have plans to build make sure you check out the rules carefully.
Don't assume a grandfathered situation will carry over once you tear down an existing structure and don't rely on verbal representations regarding any nonconforming issue.

Jenny,
There are many factors that can come into play. Lake classification is a primary one. Lot size is another factor and what your building /remodel plans are ie: additions? Planning in zoning in the Cty of Nisswa will be able to help answer most of your questions. Do you have a builder in mind? I can recommend a reputable lakehome builder if you like. Another factor is today the market offers many affordable lake properties you might want to compare purchasing an existing home vs. building. Today it is cheaper to purchase vs build due to the costs associated.
Jamie Magness Real Estate Group

Lakefront property is holding its own here in the beautiful Brainerd Lakes area. People are still buying and not minding the drive from more congested cities for a weekend retreat. I just joined Trulia or would have posted on this earlier. The information you need may be specific for the particular lake or area you are looking at,we have some associations that govern their own areas.

Jenny; I'm from the area and actually just joined Trulia. You should check to see what the setbacks are
for the property. Sometimes you can build on the existing foundation. Call planning and zoning in Nisswa
to see what you can do.

Jenny,
With gas prices increasing less people have been willing to buy seasonal properties in northern Minnesota. However it is a nice area and if it works for you go for it. I don't know if any agents from that area participate in Trulia, if they do I'm sure they'd have a different opionion.
Michael Doyle

From what I have heard reecently, the lake properties in that area have been very stable and even though the market has slowed, it remains very good.

I'd get out there and look now, there are values to be had and prices traditionally rise as we approach and go into the cabin season here in MN.

Todd Norsted