Real Estate Investment Returns 27% Annualized Over 17 Years

By
Real Estate Agent with Joe Manausa Real Estate 8508880888

Last week, I wrote a blog about a great investment my brother Mike purchased in 1991 in Richview Park. If you did not get a chance to check it out, I would recommend you click here to read about Richview Park townhomes as the lead-in to this real estate investment analysis. He has since provided me all of his operating data since the day that he purchased his townhouse in Richview Park.

As a quick summary, we have seen property values grow in Richview Park over the past 17 years, though prices have softened in the past two years. The following graph shows all arms-length transactions in Richview Park through July 2009.

 

Richview Park Townhome Analysis

The following table shows information gathered by my brother over 18 years he has owned the property. In order to simplify the Richview Park analysis, we used mid-year convention on expenses allocation. Additionally, we assumed that he bought it for investment, though he lived in it the first year, thus we measured cash flows from the time he “placed it into operation” as an investment. [click to continue…]

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Joe Manausa Real Estate
1934 Dellwood Drive
Tallahassee, FL 32303
(850) 366-8917

Comments (4)

Anonymous
Rodney Forbes

Hi Joe,

I've been a fan of your blogs for awhile. Our views seem to be pretty similar, as is our use of online social media and networking. I'd like to link my blog http://SouthFloridaRealEstateReport.com to yours.

If I have any referrals for the Tallahassee area I'll be sure to send them your way.

Best Regards,

Rodney Forbes

West Palm Beach

561-283-6497

Aug 26, 2009 12:46 AM
#1
Harry F. D'Elia III
RentVest - Phoenix, AZ
Investor , Mentor, GRI, Radio, CIPS, REOs, ABR

Another great success story to invest in real estate. Thanks for the update.

Aug 26, 2009 01:00 AM
Joe Manausa - Tallahassee, FL
Joe Manausa Real Estate - Tallahassee, FL
Tallahassee Real Estate

Thanks Harry. I'm sure we'll be starting a whole new era of these now that prices have come down.

Aug 26, 2009 11:28 PM
Joe Manausa - Tallahassee, FL
Joe Manausa Real Estate - Tallahassee, FL
Tallahassee Real Estate

Thanks Rodney, I'll check out your blog as well.

Aug 26, 2009 11:29 PM