How you can use a real estate investment to pay for your child’s college.

Have you ever wondered how to use real estate to pay for college? Did you know that you can use real estate to create a nontraditional college fund for your child? College has gotten exponentially expensive, and the traditional saving plans are just not going to keep up with the price of college. However, you can always use real estate as a way to keep up with college inflation. 

When your child is born, start looking at buying an investment home. In the beginning, you’re just looking to earn cash flow through rent. Use that extra rent and pay down the property so that by the time your child is ready for college after 18 years, you now have options. You could sell the house, use the rent income to pay for tuition, or do a cash-out refinance and use that money to pay the tuition. 

“You can use real estate to keep up with college inflation.”

With real estate, you’re looking at a 20% to 25% down payment in the beginning, and then your renter tenant should be paying the rest off. Work with a real estate professional that can guide you. Then after 18 years, you’ll have a lot of money through appreciation, typically greater than college’s inflation.

You can trust us on this topic, because we do it! If you have any questions, we’re always just a phone call away. We look forward to hearing from you.