Higher NOI = Higher Cashflow, Distributions, and Proceeds. Provides better Refi terms and better terms for buyers. Its impact in the acquisition, the hold, and the exit CANNOT be overstated.
Example: Going-in Cap Rate of 5.07% on a $24M Loan with an annual NOI of $1,216,800. Annual NOI increased by 3% or $36,504 adds $720,000 in value.
How many times and in different ways can you add $3K monthly to the NOI line?