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- Death, taxes and a college education.

They all cost money. And those cost keep rising every year. Somebody will be faced with those ever rising expenses.

None of these events carry costs that are possible to eliminate completely.

As a retired CPA, I know that all three can be manipulated to minimize the impact.

I and my three children were all faced with the burden of financing a college education, via part time jobs, parental help, loans and grants.
Do we agree that to run this gauntlet requires a lot of time, blood, sweat and tears? Yep. me too.

Wouldn't it be great if we could control (reduce) one of these educational costs. Maybe even eliminate that cost all together.
How about turning that cost into a revenue generator.

I'd like to tell you a true story about a couple of my college pals. They are brothers . Both went to Auburn University.
Both majored in and became Veterinarians. Vernon was two years older than Roy. Their father, Alton was a farmer.
And he was a very savvy individual.

Auburn is an expensive university. Alton was faced with having two boys in college for at least six years.
So he began to cipher about ways the boys could reduce some of their expenses. He thought about housing.

Alton knew the boys had spent many a night sleeping under the stars during their formative years.
Vernon and Roy, thinking about those cute girls they would meet, nixed that idea right away.

At today's prices, rental housing for a two bedroom flat could cost anywhere from $500 to $650 per month.
That is an annual outlay of $6000.00 to $7,800.00 per year. For six years, the cost would accumulate to $36,000 to $46,800.00.
And that's just ROOM, not BOARD.

Here's what Alton and the boys did.

Alfred set aside some time for he and Vernon and Roy to make the trip to Auburn Alabama.

After visiting and taking care of requirements at the University, they set out to drive the neighborhoods. Within two days, they located a quaint
little 3 Bedroom house not far from the campus. The house needed some work but it was mostly cosmetic. They bought they house for $40,000.00.
They went back home and a few days later they returned with hammers, nails, lumber, paint and electrical supplies. All were handy at minor repair jobs.
The home had a built-up attic so they added a room there, converting the home to 4 Bedrooms.

Vernon moved into the home the week before classes.

Alton and the boys had put down $2,000.00 for the improvements, co-signed a note for $38K at 10% for 15 years and wound up with monthly payments of around
$463, including taxes and insurance.

Vernon put up some "For-Rent" signs around campus. Tenants would get a Bedroom with Living Room and Kitchen privileges for $385.00 per month.
He was careful to choose his roommates, evaluating their financial strength for long term rentals.

Easily, he signed up 3 fellow students.

RESULTS?

Vernon and Roy, with some assistance from their Dad, converted a $6000 - $7800 per year expense into a net revenue stream of positive $692/mo or $8,304/year.
Over the six year period, they converted a $36,000 - $46,800 outlay into an accumulated inflow of $49,824. Of course there were the usual maintenance expenditures,
property taxes and casualty and liability insurance. But they were way ahead of the game.

On Roy's graduation day, there wasn't much time for loitering on the campus.

Roy, Veron and Alton had an appointment with the closing attorney. Earlier that month, they had SOLD that little cash cow for $50,500.00.
It had appreciated by 4% per year for each year they owned the house.

Vernon and Roy had managed to get FREE HOUSING for six years while at Auburn University. Alton, Vernon and Roy had formed a Family Limited Partnership.
They each enjoyed depreciation deductions over those years. Although much of the depreciation was recaptured, their joint profits benefited from capital-gains
treatment as this was investment property.

Yep, educational costs rise every year. But with Real Estate, you can lasso that cost and transform it to something much more pleasant . . . a rising checkbook balance.

Do you know of a college student faced with housing expenses? Share this post with them. And be sure to visit hometoolkit.info, your source (tool kit) for money making
ideas whether you are a buyer, owner or seller of a home.

Thanks for the visit. Have a great day!

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