Can cabin on owned land be comped with cabin on leased forest service land

[Dan H.]

I am looking to make an offer on a cabin. In this market there are cabins on their own land and cabins on leased forest service land. Our local real estate agent stated that the forest service is not obligated to extend the lease which would require moving the cabin. She also said that cabins on the forest service land there cannot be rented.

I received a list of “comps” from my mortgage broker. In this list there are 5 cabins between $137 to $178 per foot (PSF). Then there are 10 cabins between $224/ft to $319/ft. There are zero cabins in the list I was provided that had PSF between $178/ft to $224/ft.

I speculated that the cheaper cabins were likely due to being on leased forest service land. The mortgage broker indicated that cabins on leased land can be a comp to cabins that own the land. This seems crazy as the risk is different, the rules of what you can do with the cabin is different, and most importantly the price difference between cabins on land they own versus forest leased land is extreme.

I am interested to get feedback from certified appraisers on whether a cabin on leased forest service land would be a comp for a cabin that includes ownership of the land.

Thanks

[Alecia Loveless]

@Dan H. I do not like investments where I am not 100% in control of my asset. I do not invest in things that have HOAs or other controlling boards.

I would not invest in anything on leased land.

I have been interested in buying a laundromat but have been hesitant thus far because the only ones I have found have been on leases and I’m worried about investing hundreds of thousands of dollars into something that can be terminated or significantly altered with the end of the lease.