Buying Lease Hold Properties?

What are you takes on purchasing lease hold properties for investment purposes? There are alot of them here in Hawaii, at affordable prices. Currently your mortgage payments versus rents collected is not an issue. My concern would be is........ What happens after the date these leases are up?

Thanks in advance, also I welcome all your comments and advice.

rasberry rasberry

Comments(2)

  • 64Ford1st October, 2003

    I am not familiar with the HI market, but assume it would be similar to the rest of the states.
    The basic answer to your question is when the lease is up, make any needed repairs, and rent them out again, or sell.
    Before you purchase, make sure the rent you are currently getting is reasonable for the area. You don't want to count on getting $1000/mo, only to find that the average ifs $700. That would hurt!
    What repairs are needed? What are some (+) and (-) to the area? Talk with a local realtor and property manager They may have some more specific tips, and will be familiar with your market.
    I hope that helps.

    Good Luck!

  • DavidBrowne4th October, 2003

    My concern with lease option is how is the home titled. I would be more likely to do it if the owner set up a LLC for some protection . If you do repairs or money down that will most likely be lost if the owner fails to make payments or get sued. The title being clouded can create trouble for you

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