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What to do with 2.4M
Rank: New-farer Joined: 1/3/2011 Posts: 67 Location: nairobi
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Just to share .. I have done 100 single units and have had them for like 2yrs now.
returns are good when you have full occupancy, challenges and expenses;
exhauster services, caretaker salary, 10% comm on the agents, repairs etc
What to lookout for; elec bills - install individual prepaid metres for each, let tenants pay for the elec consumption. It is hard convincing tenants to jipanga na elec bills collectively is difficult.
rent was sh.2700 now is sh.3000 p.m.
again, location location location
happy hunting
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Rank: New-farer Joined: 1/21/2015 Posts: 78 Location: Pare Pare
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Moorings wrote:Just to share .. I have done 100 single units and have had them for like 2yrs now.
returns are good when you have full occupancy, challenges and expenses;
exhauster services, caretaker salary, 10% comm on the agents, repairs etc
What to lookout for; elec bills - install individual prepaid metres for each, let tenants pay for the elec consumption. It is hard convincing tenants to jipanga na elec bills collectively is difficult.
rent was sh.2700 now is sh.3000 p.m.
again, location location location
happy hunting Hi. A few questions here. How many units did you start with? How much capital did you begin with? Any issues you had starting out? Kanjo etc?
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Rank: Elder Joined: 2/16/2007 Posts: 2,114
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@Moorings,
First of all congratulations for pulling that off.I wish to know the following:
Is the dwelling a single project or its say on two locations?
Where is the location?
Are some of the people staying in the single rooms having families?
Do you vet the tenants?
What about water provision?
What about security?
When will you get the ROI?
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Rank: New-farer Joined: 1/3/2011 Posts: 67 Location: nairobi
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Hi all,
I started with 10 units after finishing the washrooms [6 toilets & 6 bathrooms] ... I did flashing toilets compared to my competition who did the pitlatrines.
later demand picked, I added 18 units...
56 units more I added
then 16 units
I added as demand grows. I have space left for another 72 units but am thinking of commercial shops cos I already got ready customers and brand.
water: piped water 2 sources in case on dries up
10000ltrs water tanks
elec: 3 phase - all tenants connected to individual prepaid metres
security: tenants organize for themselves
tenants: vetted [id & job location] all records kept in the cloud
kanjo: paid local chief 10k once off, otherwise no kanjo biff
Total investment = approx. 5m
break even = 1.5yrs approx.
ROI = after 1.5yrs = annual returns after expenses
250k p.m. = 3m per annum against 5m investment capital
I hope this helps..
cheers
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Rank: Member Joined: 8/5/2011 Posts: 125
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Whats your location? Moorings wrote:Just to share .. I have done 100 single units and have had them for like 2yrs now.
returns are good when you have full occupancy, challenges and expenses;
exhauster services, caretaker salary, 10% comm on the agents, repairs etc
What to lookout for; elec bills - install individual prepaid metres for each, let tenants pay for the elec consumption. It is hard convincing tenants to jipanga na elec bills collectively is difficult.
rent was sh.2700 now is sh.3000 p.m.
again, location location location
happy hunting
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Rank: Member Joined: 3/26/2012 Posts: 830
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Moorings wrote:Hi all,
I started with 10 units after finishing the washrooms [6 toilets & 6 bathrooms] ... I did flashing toilets compared to my competition who did the pitlatrines.
later demand picked, I added 18 units...
56 units more I added
then 16 units
I added as demand grows. I have space left for another 72 units but am thinking of commercial shops cos I already got ready customers and brand.
water: piped water 2 sources in case on dries up
10000ltrs water tanks
elec: 3 phase - all tenants connected to individual prepaid metres
security: tenants organize for themselves
tenants: vetted [id & job location] all records kept in the cloud
kanjo: paid local chief 10k once off, otherwise no kanjo biff
Total investment = approx. 5m
break even = 1.5yrs approx.
ROI = after 1.5yrs = annual returns after expenses
250k p.m. = 3m per annum against 5m investment capital
I hope this helps..
cheers Does this include the cost of land?? A successful man is not he who gets the best, it is he who makes the best from what he gets.
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Rank: Elder Joined: 2/16/2007 Posts: 2,114
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Moorings wrote:
water: piped water 2 sources in case on dries up
10000ltrs water tanks
Is the water charged separately or its inclusive of the rent?Also during construction,were the fundis being paid per day or a figure was agreed upon as the construction was being done?
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Rank: New-farer Joined: 1/3/2011 Posts: 67 Location: nairobi
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... water costs is negligible really approx. sh.50 p.m./room
better include it in the rent since providing individual water meters may not be feasible
as for fundis, I asked a quote for building per room... was easier to manage the costs and monitor the deliverables
materials were sourced separately
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Rank: Member Joined: 1/13/2011 Posts: 297 Location: Nairobi
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Rank: Veteran Joined: 9/21/2011 Posts: 2,032
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@ moorings, what's the material of construction for the 100 units?
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Rank: Member Joined: 12/2/2009 Posts: 299 Location: kenya
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@Mooring.Location kindly.
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Rank: Member Joined: 12/2/2009 Posts: 299 Location: kenya
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@Mooring.Location kindly.I'd also be interested to know what size of land you've develop these 100units coz from a previous discussion here it was analysed that 1/8 acre wud take 20single units.so by extension it means your project covers 5/8acre.Land in Nariobi within a radius of 20km where you can do such a development is 3m for 1/8 on the lower side.I therefore presume that cost of land is not factored in your 5m which therefore invalidates your ROI as given.
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Rank: Veteran Joined: 9/21/2011 Posts: 2,032
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5m for 100 units....each cost 50K? Assuming each unit is 3x4m, cost per sqm is circa 4K, assuming brick and mortar??. That's why am really interested to know material of construction. Assuming its mabati structures, what's the size of the land?
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Rank: Elder Joined: 2/16/2007 Posts: 2,114
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popat wrote:@Mooring.Location kindly.I'd also be interested to know what size of land you've develop these 100units coz from a previous discussion here it was analysed that 1/8 acre wud take 20single units.so by extension it means your project covers 5/8acre.Land in Nariobi within a radius of 20km where you can do such a development is 3m for 1/8 on the lower side.I therefore presume that cost of land is not factored in your 5m which therefore invalidates your ROI as given. @Moorings,you went AWOL..A picture of this project would really help a lot of us here..
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Rank: Member Joined: 4/24/2014 Posts: 159 Location: Nairobi
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As you are thinking purchase treasury bills at the current rate of 10.8% you make 53400 with the 91 days bill. 182 days tbill you make 125,000 Money comes and goes. When you have it enjoy it.
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Rank: Hello Joined: 1/28/2016 Posts: 3 Location: Nairobi
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Lend to small groups so called chamas at an interest of 2% per month. Ensure its 100% guarantee through their shares. If u do due dilligence u will grow that money. I would also consider leading to growing small businesses. It can only get better
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Rank: User Joined: 8/15/2013 Posts: 13,237 Location: Vacuum
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Moorings wrote:Hi all,
I started with 10 units after finishing the washrooms [6 toilets & 6 bathrooms] ... I did flashing toilets compared to my competition who did the pitlatrines.
later demand picked, I added 18 units...
56 units more I added
then 16 units
I added as demand grows. I have space left for another 72 units but am thinking of commercial shops cos I already got ready customers and brand.
water: piped water 2 sources in case on dries up
10000ltrs water tanks
elec: 3 phase - all tenants connected to individual prepaid metres
security: tenants organize for themselves
tenants: vetted [id & job location] all records kept in the cloud
kanjo: paid local chief 10k once off, otherwise no kanjo biff
Total investment = approx. 5m
break even = 1.5yrs approx.
ROI = after 1.5yrs = annual returns after expenses
250k p.m. = 3m per annum against 5m investment capital
I hope this helps..
cheers what was the size of the location and size of the plot? Interested in becoming a slum landlord too but outside Nairobery! If Obiero did it, Who Am I?
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Rank: Veteran Joined: 11/14/2006 Posts: 1,311
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Moorings wrote:Hi all,
I started with 10 units after finishing the washrooms [6 toilets & 6 bathrooms] ... I did flashing toilets compared to my competition who did the pitlatrines.
later demand picked, I added 18 units...
56 units more I added
then 16 units
I added as demand grows. I have space left for another 72 units but am thinking of commercial shops cos I already got ready customers and brand.
water: piped water 2 sources in case on dries up
10000ltrs water tanks
elec: 3 phase - all tenants connected to individual prepaid metres
security: tenants organize for themselves
tenants: vetted [id & job location] all records kept in the cloud
kanjo: paid local chief 10k once off, otherwise no kanjo biff
Total investment = approx. 5m
break even = 1.5yrs approx.
ROI = after 1.5yrs = annual returns after expenses
250k p.m. = 3m per annum against 5m investment capital
I hope this helps..
cheers
Assuming that the shs 5 million is construction cost for 100 units, it means that each unit costed shs 50,000. Is that possible?
Assuming it is 70 sq feet (10 x 7 ) or 6.5 sq metres, construction cost is about shs 7000 per sq metre. Is that possible.....am I missing something here?
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Rank: User Joined: 1/20/2014 Posts: 3,528
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Liv wrote:Moorings wrote:Hi all,
I started with 10 units after finishing the washrooms [6 toilets & 6 bathrooms] ... I did flashing toilets compared to my competition who did the pitlatrines.
later demand picked, I added 18 units...
56 units more I added
then 16 units
I added as demand grows. I have space left for another 72 units but am thinking of commercial shops cos I already got ready customers and brand.
water: piped water 2 sources in case on dries up
10000ltrs water tanks
elec: 3 phase - all tenants connected to individual prepaid metres
security: tenants organize for themselves
tenants: vetted [id & job location] all records kept in the cloud
kanjo: paid local chief 10k once off, otherwise no kanjo biff
Total investment = approx. 5m
break even = 1.5yrs approx.
ROI = after 1.5yrs = annual returns after expenses
250k p.m. = 3m per annum against 5m investment capital
I hope this helps..
cheers
Assuming that the shs 5 million is construction cost for 100 units, it means that each unit costed shs 50,000. Is that possible?
Assuming it is 70 sq feet (10 x 7 ) or 6.5 sq metres, construction cost is about shs 7000 per sq metre. Is that possible.....am I missing something here?
Depending on location and quality, it is possible!!!!! Formal education will make you a living. Self-education will make you a fortune - Jim Rohn.
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Rank: Member Joined: 9/9/2015 Posts: 233
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100 shanties for neighbours, wait for neighbours' next move "Buy when there's blood in the streets, even if the blood is your own."
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