@mainat, what i understand about cashflow is that investing the Kshs 15M in rental properties gives one a monthly cashinflow of about Kshs 140K which is a very good thing as this gives you power to borrow and power to do other investments etc

also if the same Kshs15M is used to buy land in kitengela and wait for it to appreciate with a view to disposing it in 5-10 years, there will be no cashinflow

But also realise that if the Ksh15M was borrowed, there will be a cashoutflow of kshs 181K per month to finance the mortgage

Cashflow is ofcourse very important but i think one cannot divorce cashflow from return on investment

This one i agree the returns are much higher. i have seen those houses and even know someone who did exactly as you say

Only that some people ofcourse will accuse you of contributing to development of slums buy squeezing families/people in such small houses. i have seen some of those houses in pipeline area where some units do not even have ventilation, sewer flowig freely

Yes i could ofcourse after considering other available investment opportunities

But for me the issue is not whether i have Kshs15M in cash or am borrowing it

The issue is either way, i need to factor in the cost of capital to properly appraise the investment returns. I think most people do not consider the cost of capital when looking at returns

ofcourse for example if am borrowing but at 5% like bankers or civil servants, then the returns dramatically improve

am not clear what you mean here. The return here would a negative 22%

Quite an enlightening discussion. I am building without finance and have been doing the numbers and keep wondering if am doing the right thing. My consolation is that am looking at early retirement and hoping that the returns will take care of my expenses at that time.