A Simple Strategy to Send Your Child Away to College and Earn Money At the Same Time

Here is a simple strategy you can utilize to kill 2 Birds with one stone. Send your kid to college and Invest in College town existent estate to assist wage off the Student Loans.

College Housing can often be expensive, Living in a dormitory is not the most advantageous life statuses for Most College students. Why not purchase a 3 or 4 sleeping room home near your child's college and usage the rent generated from the extra sleeping rooms to assist wage for your child's College Expenses.

You purchase a 4 Bedroom home for $250.000 with a 20% Down Payment leaving you a Mortgage payment of $735. The $735 Payment is based on a 5 Year Mortgage with fixed payments based on a 1.95% Interest rate. The 20% down feather payment can come up from many beginnings including the equity in your home or your individual retirement account or Keogh accounts (Talk with your tax advisor on the proper manner to make this)

You lease each sleeping room for $300 a month. Since your kid will remain in 1 sleeping room you gross $900 a calendar month (More then adequate to pay the Mortgage and some or all of the Taxes and Insurance) and your Child lives rent free. You also get the tax benefits that spell along with being a existent estate investor. Assuming an grasp rate of 7% astatine the end of 4 old age (when your kid graduates) your 250,000 house is now deserving $327,000. Your kid have got lived rent free for 4 old age while in college you have netted a net income of $75,000 or a 150% tax return on your initial $50,000 Down Payment.