During the summer of 1879, Baldwin was in South Lake Tahoe and spent time at a small hotel owned by Ephraim "Yank" Clements situated on and with rights to an entire mile of lakefront shoreline. The resort was unusual because it still retained the majestic old-growth forests that had been harvested throughout much of the basin for beams to support silver mine tunnels in the Comstock Lode. In 1880, Baldwin bought the resort when it went into foreclosure. Baldwin re-christened the property the "Tallac House" after nearby Mt. Tallac, one of the tallest mountain in the Lake Tahoe basin. His resort soon attracted travelers from across the United States seeking luxury accommodations.