Short Term Rentals on a Land Lease
My wife and I have been debating on buying an STR in Palm Springs, CA. The house is beautiful and can certainly net me a higher profit than a property without a land lease (with a land lease = typically a nicer house. Without land lease = random nothing special house).
My question is about whether a land lease is one of those "barriers to entry" that are manageable for us, or is it a bigger headache?
I've read that the owner of the land (Native Americans in this case) lease the land and renegotiate the lease when it's up. They have all the power.
FYI - house costs about 385K. Monthly land lease payment is $117
We would Airbnb the property. 100%
Thank you!