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Yesterday, my brother Mike and I were discussing our townhomes that we purchased in Richview Park in the early 90s. Richview Park is a town home community of roughly 150 homes in a very convenient location off of Richview Road and Apalachee Parkway in downtown Tallahassee.
Anyway, we were discussing the fact that real estate had dropped in value lately, yet his townhouse was still an incredible investment. This Tallahassee townhouses was purchased in the early 90s and if sold today would show a five percent annualized appreciation rate. Considering the fact that leverage was used, his return on investment (ROI) is going to be huge.
Great Returns On Townhomes In Richview Park
The real estate graph below shows that unit sales have slowed considerably in Richview Park, but values are only down somewhat from the top of the market several years ago.
The blue vertical bars represent the number of closed, arms-length townhome sales in Richview Park, while the red field shows the average price. Strangely for Tallahassee, this neighborhood has only seen a decline in prices by 3 to 5% from the peak in the market (5.5% on average price, 3.2% on price per square foot).
Richview Park As A Real Estate Investment Case Study
O.K., so here is where I hold Mike’s feet to the fire. He told me he has meticulous records of every penny he has spent and received on his townhouse in Richview Park since the day it was purchased. He will get this information to me and I will create a follow-up blog to this one and show what his return on investment would be if he were to sell it today.
Too often, people think that real estate is a “buy and flip” investment. I do not think that this is true. I think a “buy and hold” strategy has always outperformed the stock market and most other investment vehicles. We will look at this case study and see.
So, are there any predictions/guesses at what his ROI will be? Over 10%? Negative? Over 100%? Let’s see if anybody is bold enough to predict. I know he used a low money down loan and the property has appreciated at roughly 5% per year, with his purchase occurring in 1991. Please stay tuned for the follow-up to this blog article…
Recent Townhome Sales In Richview Park
| Address | Price | Sale Date | SqFt HC |
| 428 HIGH POINT LN | $127,000 | 6/26/2009 | 984 |
| 475 RICHVIEW PARK CIR E | $135,500 | 9/19/2008 | 1,044 |
| 427 RICHVIEW PARK CIR E | $131,000 | 8/29/2008 | 1,044 |
| 408 HIGH POINT LN | $141,000 | 7/31/2008 | 1,044 |
| 2921 RICHVIEW PARK CIR S | $117,200 | 7/29/2008 | 984 |
| 444 RICHVIEW PARK CIR W | $130,000 | 6/24/2008 | 1,044 |
| 3018 RICHVIEW PARK CIR N | $138,000 | 11/29/2007 | 984 |
| 2933 RICHVIEW PARK CIR S | $107,000 | 10/16/2007 | 1,044 |
| 409 RICHVIEW PARK CIR W | $127,900 | 10/10/2007 | 992 |
| 432 RICHVIEW PARK CIR E | $123,200 | 8/17/2007 | 984 |
| 3011 RICHVIEW PARK CIR S | $134,500 | 8/16/2007 | 1,044 |
| 452 HIGH POINT LN | $141,000 | 8/15/2007 | 1,044 |
| 2921 RICHVIEW PARK CIR S | $136,000 | 7/2/2007 | 984 |
| 2905 RICHVIEW PARK CIR S | $139,900 | 6/8/2007 | 1,044 |
| 445 RICHVIEW PARK CIR W | $129,500 | 5/23/2007 | 984 |
| 416 RICHVIEW PARK CIR E | $131,500 | 5/11/2007 | 984 |
| 413 HIGH POINT LN | $137,900 | 5/4/2007 | 1,044 |
| 464 RICHVIEW PARK CIR E | $135,000 | 4/24/2007 | 984 |
| 412 RICHVIEW PARK CIR W | $131,000 | 3/15/2007 | 1,044 |
| 409 HIGH POINT LN | $133,000 | 3/2/2007 | 1,044 |
| 457 RICHVIEW PARK CIR W | $139,900 | 2/22/2007 | 984 |
| 3019 RICHVIEW PARK CIR S | $132,000 | 12/29/2006 | 1,044 |
| 432 RICHVIEW PARK CIR W | $133,000 | 12/15/2006 | 992 |
| 408 HIGH POINT LN | $132,000 | 11/30/2006 | 1,044 |
| 2824 RICHVIEW PARK CIR N | $137,500 | 11/13/2006 | 1,044 |
| 378 RICHVIEW PARK CIR W | $139,000 | 11/2/2006 | 992 |
| 472 RICHVIEW PARK CIR E | $135,000 | 10/31/2006 | 984 |
| 2929 RICHVIEW PARK CIR S | $136,000 | 10/27/2006 | 992 |
| 468 RICHVIEW PARK CIR E | $137,500 | 9/26/2006 | 984 |
| 437 HIGH POINT LN | $138,000 | 7/14/2006 | 1,044 |
| 467 RICHVIEW PARK CIR E | $136,000 | 7/6/2006 | 984 |
| 452 HIGH POINT LN | $134,000 | 6/30/2006 | 1,044 |
| 476 RICHVIEW PARK CIR E | $136,000 | 6/28/2006 | 984 |
| 464 RICHVIEW PARK CIR W | $132,000 | 6/23/2006 | 936 |
| 441 RICHVIEW PARK CIR W | $133,000 | 6/5/2006 | 984 |
| 3015 RICHVIEW PARK CIR S | $132,900 | 4/21/2006 | 1,044 |
| 2809 RICHVIEW PARK CIR S | $124,400 | 4/12/2006 | 984 |
| 415 RICHVIEW PARK CIR E | $135,000 | 4/7/2006 | 1,044 |
| 448 HIGH POINT LN | $137,000 | 3/31/2006 | 1,044 |
| 3022 RICHVIEW PARK CIR N | $132,500 | 3/13/2006 | 984 |
| 449 HIGH POINT LN | $120,000 | 12/8/2005 | 984 |
| 465 HIGH POINT LN | $128,500 | 11/21/2005 | 1,044 |
| 3014 RICHVIEW PARK CIR N | $127,000 | 9/29/2005 | 1,044 |
| 465 RICHVIEW PARK CIR W | $124,000 | 8/22/2005 | 992 |
| 424 HIGH POINT LN | $120,000 | 8/17/2005 | 984 |
| 407 RICHVIEW PARK CIR E | $117,000 | 8/15/2005 | 984 |
| 444 RICHVIEW PARK CIR W | $120,000 | 8/5/2005 | 1,044 |
| 2817 RICHVIEW PARK CIR S | $250,000 | 7/29/2005 | 992 |
| 447 RICHVIEW PARK CIR E | $121,000 | 7/21/2005 | 992 |
| 433 RICHVIEW PARK CIR W | $116,000 | 7/11/2005 | 1,044 |
| 2914 RICHVIEW PARK CIR N | $117,000 | 6/30/2005 | 1,044 |
| 473 HIGH POINT LN | $118,100 | 6/28/2005 | 984 |
| 424 RICHVIEW PARK CIR W | $116,000 | 6/27/2005 | 936 |
| 425 RICHVIEW PARK CIR W | $116,000 | 6/27/2005 | 984 |
| 431 RICHVIEW PARK CIR E | $116,000 | 6/27/2005 | 1,044 |
| 469 HIGH POINT LN | $116,000 | 6/27/2005 | 1,044 |
| 479 RICHVIEW PARK CIR E | $116,000 | 6/27/2005 | 1,044 |
| 2809 RICHVIEW PARK CIR S | $62,900 | 6/23/2005 | 984 |
| 428 RICHVIEW PARK CIR W | $99,000 | 5/6/2005 | 936 |
| 3003 RICHVIEW PARK CIR S | $111,500 | 4/26/2005 | 984 |
| 3010 RICHVIEW PARK CIR N | $113,000 | 4/19/2005 | 1,044 |
| 441 HIGH POINT LN | $115,300 | 3/25/2005 | 992 |
| 443 RICHVIEW PARK CIR E | $116,000 | 3/18/2005 | 992 |
| 457 RICHVIEW PARK CIR W | $115,000 | 3/15/2005 | 984 |
| 416 RICHVIEW PARK CIR E | $109,000 | 3/2/2005 | 984 |
| 378 RICHVIEW PARK CIR W | $136,000 | 12/29/2004 | 992 |
| 455 RICHVIEW PARK CIR E | $109,900 | 12/21/2004 | 984 |
| 444 HIGH POINT LN | $114,500 | 9/30/2004 | 984 |
| 464 RICHVIEW PARK CIR W | $109,000 | 7/23/2004 | 936 |
| 2918 RICHVIEW PARK CIR N | $113,000 | 6/30/2004 | 1,044 |
| 428 HIGH POINT LN | $108,000 | 6/28/2004 | 984 |
| 476 RICHVIEW PARK CIR W | $107,000 | 5/28/2004 | 992 |
| 457 HIGH POINT LN | $106,000 | 5/25/2004 | 984 |
| 436 RICHVIEW PARK CIR W | $107,100 | 4/30/2004 | 992 |
| 440 RICHVIEW PARK CIR E | $104,000 | 4/22/2004 | 1,044 |
| 437 HIGH POINT LN | $108,000 | 4/15/2004 | 1,044 |
| 2913 RICHVIEW PARK CIR S | $110,100 | 3/29/2004 | 992 |
| 421 RICHVIEW PARK CIR W | $97,000 | 12/30/2003 | 1,044 |
| 468 RICHVIEW PARK CIR W | $96,500 | 12/15/2003 | 936 |
| 3027 RICHVIEW PARK CIR S | $92,000 | 10/24/2003 | 984 |
| 437 RICHVIEW PARK CIR W | $86,500 | 8/5/2003 | 1,044 |
| 436 RICHVIEW PARK CIR W | $87,500 | 7/22/2003 | 992 |
| 416 RICHVIEW PARK CIR W | $91,000 | 6/26/2003 | 992 |
| 435 RICHVIEW PARK CIR E | $88,000 | 6/25/2003 | 984 |
| 465 HIGH POINT LN | $85,000 | 6/6/2003 | 1,044 |
| 2817 RICHVIEW PARK CIR S | $86,000 | 4/15/2003 | 992 |
| 424 RICHVIEW PARK CIR W | $85,800 | 4/15/2003 | 936 |
| 2918 RICHVIEW PARK CIR N | $88,500 | 3/28/2003 | 1,044 |
| 479 RICHVIEW PARK CIR E | $84,000 | 3/14/2003 | 1,044 |
| 432 RICHVIEW PARK CIR W | $90,000 | 3/12/2003 | 992 |
| 431 RICHVIEW PARK CIR E | $85,000 | 1/30/2003 | 1,044 |
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Joe Manausa is a real estate blogger, a real estate investor and the Broker and Co-Owner of Century 21 First Realty. He can be reached via e-mail through the Tallahassee Real Estate Website or catch his latest writings on the Tallahassee Florida Real Estate Blog , or by calling (850) 386-2001.
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I’m curious about your brother’s townhome in Richview Park and am looking forward to your follow-up blog. I’m guessing his ROI will be about 10%.