The property is a recently built (2021) 120 m² cabin located in the woods about an hour’s drive from Medellín. It sits on a plot officially recorded as 2,200 m² but measured at roughly 2,600 m². The asking price is ≈ US $211,000, broken down into about US $110,000 for the house and US $100,000 for the land (≈ US $40 per m² of buildable land).
Airbnb performance
- Nightly rate: ≈ US $50 – $70 (the owner lists it at 500,000 COP per night, roughly US $100 for a couple).
- Occupancy: ≈ 50 % (average over the year).
- Annual gross revenue (April 2022 – March 2023): 38 million COP ≈ US $8,500.
- Reviews: 23 total, average rating 4.78 stars.
- Guest mix: ≈ 16 % foreign guests (mostly tourists), 84 % Colombian guests.
- Wi‑Fi: 10 Mbps (cellular connection).
Operating costs
- Estimated expenses: 40 % of gross revenue (cleaning, utilities, platform fees, etc.).
- Net operating income: ≈ US $5,000 per year.
- Cleaning: one 4‑hour session costs 40,000 COP (≈ US $9).
Financial return
- Cash‑on‑cash (net income ÷ total investment): ≈ 2.5 % per year.
- Yield is low compared with typical rental markets; the property does not generate a “pure” investment return.
Land and development potential
- The owner claims the plot can accommodate two additional cabins, potentially creating a small glamping site.
- Building an additional cabin is estimated at US $110,000; the land cost for each new unit would be roughly US $40 / m².
- Even with three cabins, the incremental revenue would not substantially improve the overall cash‑on‑cash return, given the modest nightly rates and occupancy.
Practical considerations
- Access: the road to the property is rough; a 4×4 vehicle is recommended.
- Security: a single interior camera is installed in the kitchen (no cameras in bathrooms or bedrooms).
- Cleaning staff lives within 500 m and charges a flat rate per visit.
Investment outlook
- The cabin functions more as a lifestyle asset than a high‑yield investment. Owners can use the property for personal vacations while offsetting some costs through Airbnb rentals.
- The low return (≈ 2.5 % net) reflects the limited occupancy and modest pricing; significant upside would require either higher rates, higher occupancy, or a shift to a more intensive hospitality model.
- Potential appreciation of land value in the Medellín outskirts could add long‑term capital gains, but this is uncertain.
Conclusion: For investors seeking strong cash flow, the property does not meet typical return thresholds. It is better suited for buyers who value a mountain retreat near Medellín and are willing to accept modest rental income to cover part of the ownership costs.
