Tustin, CA · Member since 2017 · 57 posts · 14 votes
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!
@Jacob Abuata When is the lease up? Don’t assume you will be able to renew it at anywhere near the same rate, or at all. If the numbers work in the scenario where you lose the house after the lease is up, go for it.
@John D.
Yeah, I hear a lot of negatives about it. I think I'll keep my distance. This lease is up in 2043 aaannnnd the house is fairly new, so they'd likely renegotiate at that point. I'm also afraid of the difficulty in selling down the road.
I won't bother. Thanks
Old thread but I'm curious... did you avoid buying a home in PS on leased land for a STR? There are some nice properties in PS but not owning the land seems to be a disqualifier or maybe it is a red flag for others but a sneaky way to get a good property. Look forward to your answer. Thanks.