Nicole's personal experience. She had three in college at the same time - one graduated, two are still in. At 20, Nicole's two boys were able to purchase their first homes. They bought income property where they could live, and then become the landlords and rent out the other rooms in their homes to not only pay the mortgage but to help with cash flow.
Each home cost $400,000 with a 3% down as first-time homebuyer or could be done using downpayment assistance.
If you put less down, you'd still cover the mortgage with the income, but maybe not as much pocket money.
You can use your own home equity to purchase investment properties do follow this same model and cover room and board, and increase your real estate portfolio. Consider this option instead of a 529 plan. That home you purchase for your child when they are born could appreciate over the next 15-18 years and will pay for college, or a whole lot more using the rental income and principal reduction. It could help pay for their first home and even their wedding, PLUS their education.
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OK, say you didn't plan this when they were born. Here are a couple of things to consider. You can put 10% down to help with cash flow, but if the kids did it on their own, they could have gone after downpayment assistance. 3% or 3.5% down FHA is a great start.
Room and board are two of the most expensive items to factor in for an education.
Think about a single-family home that has a rental-able basement, building in the yard, garage. Or maybe further away from campus. The answer is a creative YES - how do you do this in a hot market?
Listen to this 10 minute episode. You'll want to listen to the credit series on how to increase your credit score to learn more.
5 Important Things You Need To Know About Your Personal Credit Score What You Need to Know About Debt to Income Ratio
Using ADU Rent to Qualify for More home
Transferring Wealth Through Real Estate
Purchasing a Home in High Inflationary Times
DMAR June 2022 - Is the housing frenzy over?
A Window of Opportunity for in Today’s Market
Interest Rates Dropped Going Into Memorial Weekend
Agents and Homebuyers - The Benefits of Choosing Your Own Mortgage Team
4 Reasons Higher Interest Rates Benefit Buyers
Should You Get an Adjustable Rate Mortgage?
Tips and Strategies to Get Under Contract.
Four Reasons a Recession Will Benefit You
What does it mean if the housing market is slowing?
Know Your Definition of Success
Appreciation is dropping, will home values follow?
Interest Rates are Increasing, is a Recession Looming?
Holding Out for the Must-Haves in Your Next Home
Reverse Mortgages Used as a Smart Financial Strategy - not the loan of last resort from the past
What is the difference between FHA and conventional loans?
6 Reasons Why Home Prices are Increasing
What Happens After You Leave the Closing Table?
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