The property has no short-term rental track record to underwrite
A long-term rental being sold with the pitch of short-term rental upside has, by definition, no platform revenue history to verify -- every number in that pitch is a projection, not a fact, and needs to be underwritten as one.
Build the projection from comparable short-term rental performance in the immediate area, not from the seller's or agent's estimate, and stress-test it against a lower occupancy scenario before committing to the conversion thesis.
Permits, HOA rules and furnishing costs decide whether the conversion even works
Before assuming a long-term rental can become a short-term rental, confirm local permitting allows it, check HOA or condo association restrictions specifically (many bar short-term rentals even where the city allows them), and budget furnishing and setup costs as part of the acquisition cost, not as an afterthought.
A done-for-you acquisition process checks all three before a conversion candidate ever reaches a buyer's shortlist, since a property that fails on permitting or HOA rules isn't a discount opportunity -- it's a dead end.
BNB Accelerator's acquisitions team, led by Nick Korom, screens over 1,000 short-term rental listings a week and hand-delivers the roughly 2% that clear underwriting. Book a free consultation to see what a done-for-you short-term rental acquisition looks like for your situation.