Who would’ve thought that sending your child off to college could be an opportunity for more cash flow-in instead of cash flow-out?
A client of mine recently bought a 5 bedroom 3 story home built in the 1930’s for $350,000 in the college town where her daughter is attending university for 4 years. She put only 10% down and got a great interest rate. She rents the rooms out and has her daughter manage the home.
Now her payment is completely covered by the renters, and instead of paying for her daughter’s housing she has the opportunity to increase her cash flow.
How great is that! Rather than pouring money down the drain in rent she:
• Added another asset to the family’s legacy.
• Is teaching real life financial lessons to her daughter.
• Is creating a cash flow producing asset that will appreciate for the future.
• Secured a tax write off in the meantime.
One of my investing rules is to buy income property in college towns, especially the one you’re already investing in by having your child live there.
Rent in these areas is usually very high, so the mortgage might be the same as renting with much greater benefits.
If you have a child, grandchild, or family member going to college, you can also use the government’s “kiddie condo” program which will allow you to buy a property with your child on the loan and only put 3.5% down. Yes, only 3.5% and your child does not have to qualify.
Contact me to learn more.