Real Estate Project

About five years ago my wife and I bought 100*65 feet piece of land in a prime location in the outskirts of Nairobi city; where we want to build rental apartments. The land has been idle since then due lack of capital to invest. To start on the project we require an architect plan, structural engineer plan, county government approval, change of user and environmental impact assessment approval.   The project has been inspired by the fact that there has been increase in middle class population working in the city and requires affordable and decent rental apartments. The cost of land and construction has increased and thus people now prefer to rent than buy houses.   Here is a breakdown of the preliminary expenses before commencement of the project. Architect layout - $438.00                              Structural engineer plan - $219.00 Change of user and Environmental Impact approval – $438.00 County government approval fees - $766.00 Bill of quantity - $328.00 Total costs - $ 2189.00   I have already engaged the architect and paid a deposit of $219.00, the drawing should be ready in a few weeks time. The balance of the funds will come from savings from our business. This is a long term project which we are anticipating to complete within the next ten years. The first phase will comprise of a three bed roomed for my family and 9 one bed roomed apartments; which when complete will generate passive income of about $1300 per month. The savings from the project will be reinvested in building more rental apartments. In short, the blueprint (our dream) of the project is a four storey apartment with 50 rental units generating before tax and expenses passive income of about $5,700.00 per month. A proportion of net passive income will be used to pay dividends to investors and rest will be transferred to retained earnings for future investments. We will also continue to raise funds from potential investors in exchange of controlling equity in the project. The total cost of the project is estimated to be $820,000.00.