You acquire an underperforming building at the right basis, make only the improvements that materially affect performance, HVAC/energy systems, tenant spaces, infrastructure, resilience, or even a change in use, then increase occupancy, rents, and NOI. The article specifically emphasizes targeted improvements that produce measurable long-term value instead of redevelopment simply for redevelopment’s sake. Why I would choose this exit: once the higher NOI is proven, you refinance against the new stabilized value, pull some or potentially most of your original capital back out, and keep ownership of the improved cash-flowing asset. You retain future appreciation and cash flow rather than giving away the upside you created. In simple terms: Buy: $5M underperforming asset Improve: $1M renovation/repositioning Increase NOI: $300K → $500K Value at 7% cap: ≈ $7.14M Refinance: ~$5.0M at 70% LTV Result: Recover a substantial amount of invested capital while still owning the building. I would keep sale after stabilization as Exit #2. If institutional/core buyers are paying aggressively for stabilized, modernized assets, you can sell into that market and realize the forced appreciation.

The firm I work with is looking for active Airbnb’s, doesn’t really matter if it’s in California, it just needs to cash flow, and have the licensing in place.

@Tys Dammeyer No worries, it’s was more a general response how we’re buying our Airbnb just for future reference.

I’m interested in learning more, would like to know if it’s possible to scale, and how warm are the leads. I’m more on the buying side, but would like to do more wholesaling and possibly work with a team as well

Perfect, let me know what works with you

There’s Gaters that will put up EMD for you, just need to reach out on Facebook groups etc

Hey Lucas, thanks for sharing this with us. This is a tough situation the owners in, there’s a deal here to be made, just needs the right buyer for it. I’ll send out the message to a few people I know and see what they say.