Land Lease Condo Deals .... Is It Worth It?

[Chris Asaro]

Hello:

Was wondering if anyone has any experience with purchasing homes/condos that have land leases. I know in general they are tougher to resell along with banks won't touch them to finance but I have an opportunity to own a condo in an area that I generally could not currently afford. The monthly HOA fee is obviously significantly higher to cover the cost of the land lease. The land lease expires in 46 years and the condo I am looking at has a tenant in it and net revenue on the property will be $5k/yr. Should I consider this deal or run?

Thanks