Are you looking for an ideal place to invest in short-term rental property for Airbnb? How about a little spot known as The City of Eternal Spring?

Vincenzo Villamena is the CEO and Lead CPA at Online Taxman and the proud owner of Airbnb investment properties in Medellín, Colombia. A digital nomad himself, Vincenzo chose apartments in the Poblado neighborhood in part because of its popularity with Expats. His ability to speak Spanish along with Medellín’s reputation for beautiful weather year-round make it an ideal place for Vincenzo’s Airbnb investment.

Today Vincenzo shares how he leveraged his expertise in accounting to unearth apartments in Medellín with significant ROI. He explains the city’s regulations, addressing how closely he follows the rules in each of his investment properties. Vincenzo discusses the factors he took into consideration when deciding where to invest, the process of negotiating with property owners, and how he used his IRA to buy one of the apartments. If you’re thinking about investing in property to rent on Airbnb, listen in for Vincenzo’s best advice—and learn why it’s important to make friends with the doorman!

Topics Covered

Vincenzo’s investment properties in Medellín

  • Two apartments, both in Poblado
  • 3BR for $90K, $10K in renovations
  • Studio for $50K, $1K in renovations
  • 10% net return on both

How Vincenzo deals with regulations in Medellín

  • Can’t rent for fewer than 30 days
  • Follows rule in 3BR, much demand for 30-day stays
  • Studio in smaller building, ‘under the radar’
  • Rents studio for shorter stays despite regulations

The benefit of investing in locations with fewer seasons

  • Higher demand throughout year
  • Higher occupancy rate

How Vincenzo used his IRA to purchase the 3BR apartment

  • Can roll over IRA or 401(k) into self-directed IRA
  • Use as personal investment vehicle
  • Not allowed to live in apartment himself
  • Can’t touch rental income (goes into IRA)
  • Avoid US capital gains taxes upon sale

The factors Vincenzo considered in deciding where to invest

  • Short-term rental pricing, ROI
  • Less speculation, 7% appreciation
  • Large number of digital nomads visiting area

Vincenzo’s advice for aspiring Airbnb investors

  • Know the market, choose place you want to spend time
  • Be patient, actively search for good deals
  • Keep an ear to the street
  • Doormen know where best deals are
  • Secure good lawyer, accountant
  • If deal seems too good to be true, it probably is

How Vincenzo negotiated to buy his investment properties

  • Residents known as shrewd negotiators
  • Bought 3BR from couple (lease-to-buy)
  • Negotiated for studio to include Smart TV, washer/dryer, kitchen supplies

Connect with Vincenzo

Online Taxman

Resources

Get Paid for Your Pad EP008

OLX

Connect with Jasper

Email: jasper@getpaidforyourpad.com

Twitter: @GetPaidForUrPad

Instagram: @GetPaidForYourPad 

Facebook: www.facebook.com/getpaidforyourpad

This episode is sponsored by Hostfully.com where you can create a custom digital guidebook for your guests!

To subscribe to the podcast, please use the links below

Click Here to Subscribe via iTunes

Click here to Subscribe via Stitcher (Android users)

If you like the show, please consider leaving the show a review in iTunes or Stitcher. A couple minutes of your time can help the show immensely! Thanks!

November 20, 2017

EP206: Investing in Airbnb Properties in Medellín

Are you looking for an ideal place to invest in short-term rental property for Airbnb? How about a little spot known as The City of Eternal […]
November 17, 2017

EP205: This Week in the World of Airbnb

If you’ve ever used Smart Pricing, you know that the tool tends toward the lowest prices—favoring guests over hosts in order to increase the number of […]
November 13, 2017
Hosting bridal parties at the Ohio city getaway

EP204: Hosting Bridal Parties at ‘The Ohio City Getaway’

While most Airbnb hosts avoid party-going guests like the plague, Airbnb Superhost Walter McCormick welcomes them. In fact, he caters specifically to bachelor and bachelorette parties […]
November 10, 2017

EP203: This Week in the World of Airbnb

If you can’t beat ‘em, join ‘em. As the popularity of short-term rentals grows, more and more landlords are changing their stance on the practice. It […]
November 7, 2017
EP202_ Behind the scenes at Get Paid For Your Pad

EP202: Behind the scenes at Get Paid For Your Pad

When I record a podcast episode, I often write down some announcements or things I want to talk about outside of the person I’m interviewing. However, […]
November 3, 2017

EP201: This Week in the World of Airbnb

Special events like the Super Bowl present an opportunity for residents of the host city to list on Airbnb and generate extra income, but how do […]
October 30, 2017

EP200: A Serial Airbnb Entrepreneur from Lafayette

There are a number of different ways to take advantage of the Airbnb platform, from listing a room in your own home to re-leasing a rented […]
October 27, 2017

EP199: This Week in the World of Airbnb

Airbnb Experiences has not quite lived up to the fanfare that accompanied its launch a year ago, and this week Leigh Gallagher, author of The Airbnb […]
October 23, 2017

EP198: How to Use Facebook to Enhance Your Airbnb Business

Perhaps the greatest challenge of being a remote host is building a relationship with your guests when you can’t be there face to face. Airbnb was […]
October 20, 2017

EP197: This Week in the World of Airbnb

It’s the top search question on Airbnb’s website and something every host has wondered: How do I improve my search rankings? Airbnb released a blog post […]
October 16, 2017
Airbnb Hosts Businesses

EP196: Roamlocal: How Airbnb Hosts Can Work with Local Businesses

Paul Hart, founder of Roamlocal, want to connect Airbnb hosts, guests and local businesses to create a win-win-win situation. Guests want to live like a local, […]
October 13, 2017

EP195: This Week in the World of Airbnb

Airbnb celebrates another win in its pursuit to target the business traveler, announcing a new partnership with co-working space giant WeWork. The convenience of booking a […]