Purchasing a Land Trust Home for Rental

[Zach Adams]

I am currently looking at a home and I found out that it is a land trust. The land lease is set and can only go up by $1 per year and they say that the house needs to be sold below market value and you receive 25% of the appreciation. Should I be concerned about going into this? It would make a really good rental and they don't say that you can't do that. Is there a chance that they can take the land back? Am I missing anything obvious? Or would this be a good idea to generate cashflow even though I will not be able to make lots on the appreciation after the sale of the home?