Ground lease Condo $125k- Rent $2205

[Gabriela Gomez]

I recently came across a condo that can conservatively make a little over $400 a month in a very desirable tourist location. However, condo has a ground lease that expires in 2049. Condo is going for $125k, I would need to add about 10k in renovations. I can rent it to military and cash flow about $400 or I can Airbnb it and cash flow about $700 or more. I looked into ground leases and learned that upon lease expiration, property and any development reverts back to the landowner. What are your thoughts? Would you purchase this ground lease condo? The numbers make sense but the fact that I will never have equity/ appreciation is holding me back.