Multi-Family Home Land Lease

[Michael Doherty]

I am in the process of making an offer on a MFH that is a good deal. The only caveat is there is a land lease. Has anyone had any experience purchasing a MFH with a land lease and it working out?

My potential concerns are: will it hurt my cash flow?  Will the cost of the land increase each year I would renew? I will only build equity on the home, not the land. Possibly reselling the home on a land lease might be difficult.

Any comments or thoughts or other concerns i should be thinking of regarding this situation would be greatly appreciated, thanks!