Leasehold till 2050, worth it? (2B2B) (300ishk$)

[Ian Bruesehoff]

Hi everyone, 

AirDNA is projecting $113k projected revenue, 84% occupancy, and a daily rate of $370. HOA $1120 a mo.

OPEX $31k, NOI $82k, CAP rate 25%.

I currently own & operate two STR‘S in SoCal USA, both fee-simple, no leasehold, so I'm new to this concept.

Any advice on if this is a good idea? I know that LH’s get a bad reputation, but with the leasehold till 2050, that’s 25 years of possible excellent cash flow, It’s attractive to me to invest in from that perspective alone. 

Any advice or horror stories welcome, thanks.