Skip to Content
Local News

The Haunted House of Isles: Neighbors Wait for Action

10:06 AM CDT on October 1, 2025

Susan Lenfestey is a regular contributor. She lives in Lowry Hill.

October, being the month of ghosts and haunted houses, seemed a good time to check in on the property at 2737 E. Lake of the Isles Parkway to find out what the heck is going on.

Hill & Lake Press has written previously about the once-lovely house that has been left empty and neglected by owner Terry Persaud since 2012.

In the February 2024 issue, Sean Murphy detailed the deterioration of the house and Persaud’s puzzling lack of upkeep. After he failed to pay taxes, Hennepin County foreclosed on the house in 2023, raising hopes for a new owner. But despite testimony from neighbors and the City of Minneapolis, the county allowed Persaud to pay the $63,000 due and reclaim the property with no restrictions. At the time, Persaud promised to rehabilitate the house within six to nine months. Trick or treat.

In the October 2024 issue, Mike Erlandson reported that nothing had been done and, in fact, things had gotten worse — with squatters and squirrels moving into the house, and ongoing safety issues, including a gas leak requiring an emergency nighttime repair.

A recent check-in with neighbors revealed more of the same: the front door left wide open, the garage door partially open, people freely accessing the building, foot-high grass, and garbage strewn about the property.

If there is any good news in this creepy story, it’s that neighbors are heartened by the efforts of Minneapolis inspector Wayne Murphy, who says the property has been a thorn in his side for years.

According to Murphy, on Sept. 1 of this year, the house was placed on the city’s new prolonged vacancy program, which starts with a $250 monthly fine and doubles every month until it caps at $2,000. He’s hopeful the fines will be expensive enough to capture Persaud’s attention and prompt action.

Murphy also noted steps the city is taking to discourage vagrancy and make the property less of an eyesore. Crews have hauled garbage, boarded the garage and mowed the lawn. Persaud is responsible for paying for these services. Trick or treat.

Neighbors are encouraged to call 911 if they see anyone in the house or attempting to enter it. Other, less serious complaints should be directed to 311, where — if nothing else — they create a paper trail.

As long as taxes are paid, there is nothing the county can do. It’s up to Persaud to restore the house or sell it to someone who will. For now, this scary house is one to avoid on Halloween.

The scariest house on Lake of the Isles doesn’t need Halloween decorations — vacant for years, it already gives neighbors the creeps. (Images: Tom Hoch)

More Stories

October 2026 Issue

October 12, 2026

Uptown’s Worst Block Gets a Do-Over

The city admits that the 2018 redesign of Hennepin Avenue between Lake Street and 31st Street didn’t work. A quick fix with paint comes this fall, a real rebuild in 2028. I went to the open house to hear about it. So did a few dozen other people.

October 12, 2026

Renters Organize as Building Violations Pile Up

Tenants in five large apartment buildings describe lost heat, no hot water and mice. The city says enforcement has limits, and building owners did not respond.

October 12, 2026

Letters to the Editor

Our goal is to offer readers diverse perspectives on newsworthy events or issues of broad public concern to the Hill & Lake community. Our copy limit is 300 words (750 words for a commentary or as space permits), and we reserve the right to edit for clarity and length. We do not publish submissions from anonymous sources; all contributor identities must be verified.

October 12, 2026

School Board Election Matters

Quick, name a School Board candidate. Chances are you can’t! With a deficit of more than $39 million and school closings on the table, the two at-large seats on your November ballot deserve a closer look.

October 12, 2026

Dear MPS: “Trust Me, Bro” Is Not Good Governance

The district’s plan closes 14 to 16 schools, only saves about $700,000 and asks parents to take the rest on faith. A parent who has dated this guy before says: Show your work, bro.

October 12, 2026