Wazuans, I am anticipating getting this money(pooled funds and loan top up) and am torn between:
1. Buying a near-prime plot preferably in Eldy/Kitale (eighth 4 btn 1.5-1.7m) then the balance, I start constructing 1BR houses for rent. I am hoping to get rent of 6K-10K for such a house(estimate 300k per house, basic finish). My concern is the plot will take a huge chunk of the money just leaving me with a little to construct the houses, mayb 2 max.
2. Car import business - gathering more info(dollar issues really a turn off but experts please advice). I believe with 2.4m i can start with lower end cars and make some money before i decide whether to continue or once the 2.4 grows to 3.5m(I blv) I jump out and go for the rentals(seems like the thing i want to do).
3. Securing the plot 1st, for say 1.6M, then the balance I do what? - build 2 -2br units or start car import business with the about 800K - 1 low end car?

Where have you been? I've been waiting for you to "wag your tail" on the highs that FB has been hitting

I'll let Zuckerberg do that

I have done some research, not exhaustive though, but I have some info. For the rents, those are the rates, going by the houses in the neighborhood of the plots I have seen.
Yes, for the cars its kinda tricky, but I also know some people/colleagues who are selling and i wanted to use them to initially import- I know the type and quality of car really matters. What I don't have exhaustively is general information about the market, but working on it just in case I decide to go that route.
I have been following the stocks thread, but I have never had guts. For stocks I need expert guidance, otherwise I know it will be kind of shooting in the dark.

And how many units do you intent to build ?

This is what i would do myself:1. Continue doing what you did to enable you get the loan in the first place. 2. Buy the plot in near prime area. 3. The balance, buy another plot in a not so prime area. After 3-5 yrs or so, sell the not so prime plot, combine with yr savings and possibly another loan or top up and build yr flats. Then come back and thank me. Only thing is to take care with land transactions

If bedsitters - 14 in an 1/8th. A neighboring plot(Eldy 1.5km from a campus) had plain bedsitters, no tiles going for 4K p.m. Tiled ones go for about 4.5k-5k p.m. If fully built monthly income of 63k.
But with the seasonal nature of campus programs,(implying seasonal occupancy) I thought of 1br units, (9 fit in an 1/8th) and rent is 6k p.m. If fully built and occupied the monthly gross income is 54k.

The issue here is the cost of construction(excluding the plot). Fundis were telling me the total cost estimate is about 5M. So that is where my headache begins.

@limanika, am salaried and a sacco member, where I have been getting all loans. I thought of it this way too, but am looking at the value gain in a plot in 5yrs vs what some alternative businesses(maybe theoretically) can make in 5yrs. If I bought a plot say for 500k, its unlikely it will be worth 2M after 5yrs, in these counties in the western part of the country. I believe there is something different I can do and make money faster than that.
Also, unless the plot is very prime, it may take time to dispose it off. Reason I am looking for alternatives.

Secure that plot for 1.5m ,the 900k balance is more than sufficient for You to start a commercial activity in that plot like chicken farming and a small mabati structure for Your worker. The revenue You get should be enough to pay the monthly installments.

Thanks T9 MY experience with cars car imports spans 12years its never gotten worse since 2003 when i imported the first car. It takes a while to bUILD contacts and trust but the time is now to start. I easily sell cars through my trusted line of refferals without seeking new business. Unfortunately mine comes with consultation fees just like when u visit the experienced dentist or cardiologist but its very good bussiness when u get aligned well.