Property on Leased Land

[Jason Khoury]

Hi there,

I am wondering if anyone has any experience with owning property on leased land? 

I understand the concept of it and know that the home will not appreciate as much & lease amount can increase etc.  Just looking for some advice or any thoughts/warnings you guys may have on leased land properties.  The land is on a 20-year lease.

Being in WA state, options are limited in my area and homes prices are somewhat out of reach. If I were to go this route it would be a midterm primary (3-5 years) and then be converted to STR or normal rental property after that. The properties I am looking at are more than affordable for my income and would still allow me to save between 30-40% of my monthly income.

The property would allow for some value add, making it a potential long term BRRRR. I am not sure if renovations for a home on leased land is worth it.

Thanks in advance for any replies!