Strategies for REI with high interest rates in Colombia

[Maarten Goossens]

Hi everyone, I have enjoyed reading BP for a while, first time poster. Looking for advice regarding my particular situation here in Colombia. Me and me wife own, other than our primary residence, two units in an apartment building. Both are producing OK income and we finished paying mortage on these units last year. We are now thinking of taking a loan on that property to invest in more units and grow a portfolio taking new loans or refi's. The thing is interest rates are very high here (11% for 20y fixed) which makes it difficult to find properties with potential cash flow. On the other hand, taxes are low and inflation is substantial (3-5%), and as rent is adjusted yearly for inflation, neutral or even negative properties should be flowing positive next year or within a couple of years. On a typical unit yearly rent yield is about 7% of value, we aim to buy with a discount and do small rehab to increase the yield, but still we would be nowhere near the numbers I have seen on many BP posts.

Do you think a buy and hold strategy makes any sense here? Or should I look for other strategies (many investors here are in building rather than owning).