Flipping Apartments in Medellin

[Aurelio Soliveri]

I'm a small real estate investor in Medellin and would like to start flipping apartments. I'm interested in understand the good the bad and the ugly before starting my new venture.

[Bob Ebaugh]

I own a personal second home in Medellin.   Before Covid we were there about 5 months a year split between winter and summer in the dry seasons.   We originally tried renting, but most buildings, including ours have a minimum rental period of one month.   Getting 2-3 months a year wasn't worth it, so we now keep it vacant.

On an annual basis, rental returns are better in the US.   In both the short term AirBnB or long term unfurnished market.

But you didn't ask about rentals...flipping apartments should be feasible.  Three things immediately come to mind, 1) Are you a native?  You will need connections to get the rehab completed at wholesale pricing.   Not sure how much you can get away with there doing it yourself.  2) The market there for purchase and resale isn't like I know in the US.   It's really hard to establish market values.   Colombians like "new", and with lots of new construction, it's readily available.   And they pay for new.   Even though our building is a well maintained 20 year old building, the "new" building next door sold similar 3/2 apartments for 2 times the price per sq meter as our building sells for.  Some of it may be financing, which is really hard for anyone to get in Colombia. And 3) be prepared for a finished flip to sit vacant for a long time.   I don't know the average time on market there, but would bet it's in the 6-12 month range.   Here it's measured in days...less than 30 in my home market.   That's gonna cost a flipper.

You need to identify a neighborhood that minimizes those issues.   I have no idea where that is.   Hopefully you do!   Good luck.

...and a final thought, if you want to take profits out of the country, talk to a good attorney.   That's not easy.