I have a plan to spend like 1.5 m to 2m for a 1/8 plot, then put up one floor of single rooms and bed sitters.
My plan is to build in one of the towns Meru ,Embu ,Mwea areas… reason being prime land there is a bit cheaper…compared to Nairobi n Kiambu…
what are the pit falls of this plan for those who have similar projects ?
am still scouting for a good plot
Land is not cheap in Meru like you think especially around the residential areas like Kaaga, Kinoru, Milimani and Gitoro.
However, you could target KEMU students who mostly reside in bedsitters.
its cheaper than Nairobi by far i guess.
Dealing with low income earners is likely to not be a passive income. I wouldn’t bother with real estate if I have to be bothered to earn a pittance.
If you are going to invest in low cost housing then just go all in and be a slumlord. Mabati houses with a shared outhouse have the highest return on investment. If you are heartless enough that is…
wrong attitude… collecting rent from high end customers is a struggle too… kwanza hao wanakujanga na court orders…
My grandpa had dozens of houses all over. He gave up on the low cost units and just started giving them out for free to the college chics he was hitting. It stopped being worth the hustle.
How come he didn’t give you one?
He lacked personal discipline, alichanganya urafiki na biashara
A low cost unit ama? Lol. Anyway, am not complaining, he’s my inspiration in life.
Low cost is not a good investment. Middle income target is best, never lacked tenants been years now. If you have the cash you can do hotel with rooms gives pretty good returns.
Red peel is getting to your head young man. Heshimu babako nugu ino.
middle income from 1 bed-rooms ?
ukichanganya biz na mapenzi it ends up that way
Ungesema alicheswa
Word of advice, never build houses targeting students, it will end in tears. target their lecturers and or mature crowd of business people/teachers. That was what I did in 2019, while locals were building single room with shared loos targeting the 400 students at a cost of @1500, I built 5 one bedroom houses ensuite units. All the units (mine and theirs) got tenants, when Covid19 striked, their units were vacant while I enjoyed continued revenue to their chagrin.
great insight, where are your houses built?
what was your average cost per 1 bed-room
Inspiration to be hitting college kids in your old age? WTF
Yes, I’d def love that man. I was there the day he died, and I felt a part of me die. The man was larger than life.
Target TIVETS. I’m obviously not recommending sub standard constructions, but they have the highest ROI.