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What to do with 2.4M
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Moorings
#41 Posted : Monday, January 25, 2016 7:19:39 PM
Rank: New-farer

Joined: 1/3/2011
Posts: 67
Location: nairobi
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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Nimerudi
#42 Posted : Monday, January 25, 2016 8:12:20 PM
Rank: New-farer

Joined: 1/21/2015
Posts: 78
Location: Pare Pare
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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Chaka
#43 Posted : Monday, January 25, 2016 8:56:13 PM
Rank: Elder

Joined: 2/16/2007
Posts: 2,114
@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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Moorings
#44 Posted : Tuesday, January 26, 2016 6:27:27 PM
Rank: New-farer

Joined: 1/3/2011
Posts: 67
Location: nairobi
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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kiwaru
#45 Posted : Tuesday, January 26, 2016 7:00:02 PM
Rank: Member

Joined: 8/5/2011
Posts: 125
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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S.Mutaga III
#46 Posted : Tuesday, January 26, 2016 8:02:25 PM
Rank: Member

Joined: 3/26/2012
Posts: 830
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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Chaka
#47 Posted : Wednesday, January 27, 2016 9:45:02 AM
Rank: Elder

Joined: 2/16/2007
Posts: 2,114
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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  | | Edit by user: Wednesday, January 27, 2016 10:06 AM | Reason: Not specified
Moorings
#48 Posted : Wednesday, January 27, 2016 11:08:37 AM
Rank: New-farer

Joined: 1/3/2011
Posts: 67
Location: nairobi
... 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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Foz00
#49 Posted : Wednesday, January 27, 2016 2:10:55 PM
Rank: Member

Joined: 1/13/2011
Posts: 297
Location: Nairobi
Good project, photos
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limanika
#50 Posted : Thursday, February 04, 2016 9:37:39 PM
Rank: Veteran

Joined: 9/21/2011
Posts: 2,032
@ moorings, what's the material of construction for the 100 units?
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