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2013-02-05 10:49:02
Let Your Tenants Send Your Kids to College

Most people have lots of things to save for but not always enough discretionary income after the family essentials have been met.

A relatively small investment in a rental home can control a good home that will easily rent, generate positive cash flows and pay for itself. The borrowed funds create leverage that earn a return on the total value of the home and not just the amount of cash you have invested.

The strategy is simple. Find a slightly below average priced home that will rent well. It will appeal to a larger group of people while it's rented and when it's ready to be sold.

Rent the home and maintain its condition over the years. As the loan amortizes and the value increases, the equity will grow. When your student is ready to start college, you'll actually have several options.

You can sell the property; pay the tax on the gain at the reduced capital gains rate and fund the education. Another option would be to refinance and take the proceeds to pay for the tuition. This would allow you to continue to own the asset but would free your equity and under current tax laws is a non-taxable event.

Regardless of whether you're trying to plan for your children's education or your own retirement, rental property offers many solid investment opportunities. Contact me if you want more information.

 
Blog Archive
2014-02-03 08:51:39
Find a Better Return

2014-02-01 09:26:32
Why Borrowers Pay Different Rates

2014-02-01 09:23:51
Refinance to Remove a Person

2014-02-01 09:18:46
What Kind Of Showing Was It?

2014-02-01 09:17:26
What Can You Expect?

2014-02-01 09:15:56
Interviewing a Mover

2014-02-01 09:13:54
Personal Finance Review

2013-11-16 14:02:34
'Please Take Our Offer'

2013-11-16 13:51:09
Retirement Without a Mortgage

2013-11-16 13:49:42
If I'd Known

2013-11-16 13:37:54
Who's Paying Your Mortgage

2013-11-04 12:30:25
Breathe Easy

2013-11-04 12:27:14
Will the 'Good Life' Be Ready When You Are?

2013-11-04 12:24:31
What's It Worth?

2013-11-04 12:19:54
Renters Want to Buy

2013-11-04 12:18:44
Low Inventory = Multiple Offers

2013-11-04 12:15:17
Debt Relief = Income

2013-11-04 11:52:44
FHA & VA Assumption

2013-11-04 11:42:03
When Rates Go Up

2013-11-04 11:21:49
It Can't Hurt to Wait, Can It?

2013-11-04 11:19:00
Where Is It Invested?

2013-11-04 10:48:02
Real Estate 411

2013-11-04 10:46:22
All Dollars Not Equal

2013-10-21 13:47:26
Get Regular Check-ups

2013-10-21 13:43:53
A Home Is More Than an Address

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