Is there liquidity in the local economy (majamaa wa apo Malindi wako na doh to spend?) Ju unaeza jenga shops, tenants waingie but biz yao runs aground if peeps hawana hela za ku.patronise izo biashara, consequently washindwe kukeep up na rents, ident mfuko yako cashflow.
Wee ndo wajua terrain. Piga research mwenyewe ujue au ingekua kheri uweke unit moja upige biashara worthwhile instead ya kujenga full units usubiri tenants. No right answer
That rate of return seems high, and thus the risk is higher - lakini do your research well, the major aspects being the cost of building make sure you get a proper quote before starting the last thing you would want ni kukwama na mnengo.
The second part which is very important also is do research around the area, not only on the average rental prices, but also on the occupancy rate.
If that seems fair then go for it, one can not grow without some good risk hapa na pale.
Your cashflows are not sufficient to cover your loan repayment. Find something else to do with the money
At those returns I’d say Jenga. In three to four years the property will be yours having repaid the loan. Most properties take a lot longer than that