Flipping homes on land leases

[Rob U.]

I'm considering a flip on a land lease. Here's the details. Price 135k, rehab $15k, ARV $190-210k. HOA $700/mo!!! In/out in 2 weeks for rehab.

Obviously the HOA is keeping values in this neighborhood down because an owner would have a mortgage plus another $715/mo for the HOA, which only covers use to a community center but nothing else.

Besides holding costs, is there anything else I should be concerned with for a flip on a land lease? 

[Chris Seveney]

How confident are you on the ARV. Properties typically on a land lease in communities like this are more difficult to get financing on - so not only check the values but also time it takes for these properties to sell to understand your holding costs