1) Buy a 4 bedroom home within 2 miles of the campus.
Make sure the mortgage will cover the entire college loan.
You will turn it into a mini-dorm.
2) Get a student loan to cover tuition.
3) Get a mortgage big enough to cover furnishing and upkeep of the property.
4) Furnish it with early “Salvation Army” furniture.
Basic student furniture: Desks, Chairs, Bed, Chest of Drawers, Lamps and a Small Bookcase.
Remember, all this is tax deductible!
5) Rent 3 of the bedrooms to individual students on a yearly basis lease, not just 9 months, cosigned by parents.
Divide the mortgage payment by 3 and get each student to pay 1/3 of the rent to cover the mortgage.
6) Keep 1 bedroom for your child as caretaker.
Hire your child as a property manager and pay them at least $100 a month to care for the property, collect rents, inspecting it weekly, renting out a room when there is a vacancy, contracting for any repairs that need to be made and report to you.
Remember, this too is tax deductible!
7) Use tax strategies to generate extra income to pay taxes and insurance.
Real Estate Depreciation, Appreciation, Points and Interest Payments are a few of the ways.
See a tax professional to get additional help here.
8) When your child graduates, sell the property to another family for a nice profit. Because of the demand for student housing in college areas, the value of your property should be substantial.
The best way to sell the property for top dollar is to run an ad in the school and city newspapers stating:
“Send your child to college for free- call me for details”.
9) Pay off the college loan with the profit from the sale of the property when your child graduates.