Assuming you are looking at this opportunity as a true investment- I would advise you to not think about an investment as its "pros & cons" but ask, what is the net after-tax return at the end of the investment holding period? In essence there are only two things that matter; what is your after-tax ROI (Return On Investment), and does this ROI meet your required return? Therefore, you need to read the lease, understand the income & expenses, and run the numbers based on your cash outlay, capital improvements, management, vacancy, financing, taxes, recapture & sale proceeds (if any), for your holding period.
Now, if your question is not an investment question- then I would say- each year that passes and the lease term gets closer to the end, generally the house will loose value as the next buyer will be confronted with the same questions you have today and will be unwilling to pay what you paid. However, if this property is in a master planned development that doesn't sell the land and all homes are under the same conditions, like mobile home parks, then the value most likely will remain consistent year over year. Lease rates are likely rise at predetermined intervals and will influence the value should you wish to sell later. The property management can help answer your questions with your properties future lease terms. You may want to get an agent that can walk you through this process. Hope this helps!
Best, Michael B. Marechal, CCIM
Jun 1, 2015