22/06/2026
BANK LOAN FOR RENTALS....Someone commented on my previous post that "You can get a bank loan and then pay it back 100% from your monthly rental income of that same house you built" and I just laughed 😂
Ok, so can you get a bank loan, build rentals and then let the rentals pay back the loan 100%?...The answer is NO, NEVER, YOU CAN'T 😂
Ok, let's assume you already have the land, Prime land, say in PECE AFRICAN QTRS in GULU CITY.
And you want to build 10 units of SPACIOUS & BEAUTIFUL one bedroom houses with rental rates of 500K per month.
Cost of constructing each unit shall be 45M, that's 450M for the 10 units right?
So your rental income per month shall be 5M, that's 60M annually right? 😀
So, let's say you get a bank loan(average bank loan rate is 20% per annum) for 10 years.
PRINCIPAL LOAN AMOUNT = 450M
ANNUAL LOAN INTEREST =90M 😂
LOAN INTEREST FOR 10 YEARS = 900M 😂😂
TOTAL AMOUNT TO BE PAID BACK = 1.35B 🙌😂
Now, let's calculate your rental income.
MONTHLY RENT= 5M
ANNUAL RENT = 60M
RENT FOR TEN YEARS = 600M 😂
Doing the maths for it to maths, at the end of the 10 years, BANK wants 1.35B when you have only collected rent of 600M 🙌😂😂
Like, the rent collected isn't even half of what the bank wants 🙌😂😂😂😂😂😂😂
Ok, ok ok, LET'S SAY YOU DECIDE TO GET THE LOAN FOR 5 YEARS ONLY. 😂
PRINCIPAL BANK LOAN AMOUNT =450M
LOAN INTEREST FOR 5 YEARS = 450M
TOTAL BANK MONEY = 900M.😂
YOUR 5 YEARS RENTAL INCOME= 300M 😂😂😂
Am on site here mixing concrete....i mean, Should I continue mathing the maths or I should just focus n continue mixing concrete? 😂😂
