They can provide guidance on potential legal options and rights concerning the city’s demands and the lender.Negotiate with the City:Seek Extensions or Variances: Your friend can request an extension on the deadline to comply or apply for variances that might allow the property to meet less stringent requirements.Explore Grants or Subsidies: Check if there are any local, state, or federal grants or subsidies available for renovating older properties, especially those providing low-income housing.Engage with the Lender:Discuss Financial Hardship: Present the case to the lender, explaining the situation and the financial hardship imposed by the new building codes.Propose a Loan Modification: Suggest modifying the loan terms, such as extending the loan period, reducing interest rates, or even deferring payments temporarily.Negotiate a Short Sale: If the property must be demolished and rebuilt, your friend can discuss the possibility of a short sale where the lender agrees to accept less than the owed amount to avoid foreclosure.Explore Refinance or New Loans:Seek New Financing Options: Look for other financial institutions or private lenders willing to provide financing for renovation or rebuilding.

have you contacted the local banks and credit unions in the area for options  ?  

It's great that you're looking to turn this situation into a positive venture with Airbnb.I think there is a lot to unpack here to answer your question.

You'd have plenty of good options with your budget

The seller then assumes the first lien position as the mortgage holder, allowing you to negotiate the interest rates, terms, and payments creatively.

I don't understand why anything else would be an option.

You have two main options for sourcing below-market deals:1) Direct to seller marketing2) WholesalersD2S requires more time, expertise, marketing budget, and sales skills, but you get a better deal. 

It's best to scope out your options and talk to multiple sources. 

Given that it's almost a 50% increase from the existing rent price, you might want to set a timeline of 2 or 3 months before it taking effect so they can find alternative housing if they plan on vacating instead of staying at that price point.Another option could be to ask for the rent increase, but offer something in return.

Currently buying a property in Cleveland and need to explore financing options.