So you have a kid or two in college (or headed there soon). Chances are that you're going to be paying for housing of some sort, tuition, books, meals, clothes, you name it... it's not cheap. Here are some ideas that may allow you to save some money, make some money, and/or add some write-offs to your tax bill all while investing in real estate. Let me preface these by saying that I'm not a CPA or a lawyer and I don't give tax or legal advice. These aren't even my ideas, but they sounded good so I thought I'd share. Please consult your own CPA, lawyer and/or tax advisor before making any moves.:

1. Get in-state tuition prices! If you have a son or daughter headed to a university out of state, investigate the residency requirements for the state (and university) they're headed to. Sometimes just buying an investment property a few months ahead of time may allow you to pay in-state tuition rates. Why would you want an investment property in another state? Keep reading...
2. Get some rental income! Besides housing for your own kid, renting a bedroom or two to friends can help defer the cost of the home and have everyone paying amounts closer to dorm or, at least, apartment rent. Afraid the roomies are not responsible enough to pay their rent? Get their Mom & Dad to co-sign their room lease (yes, you put the room lease in writing with shared use of, and responsibility for, the common areas). The parents are often paying for the housing anyway. If they won't co-sign, this may be a red-flag for this potential roomie. You might also check credit and, as with any rental, get a month's rent as a deposit.
3. Stop paying your kids expenses! Instead, pay your property manager a salary. While tuition is tax deductible, books, food, clothes, housing, and other expenses are usually not. However, if you pay your son or daughter a reasonable salary for keeping the house in good shape, making sure rent checks are mailed, etc. you can deduct this salary as a business expense associated with your rental property. Then, let them pay their bills from their salary!
4. Take business trips! Instead of visiting your kid at college, go visit your property and property manager. Instead of paying for kids to come home for the weekend to visit Mom & Dad, pay for your property manager to come meet with the boss(es). Chances are you'll talk about the property anyway, right? This may make part or all of the trip tax deductible. How much may depend on how much business you talk (and document). Just expect your property manager to always arrive bearing laundry to wash and asking for a raise...

There you have just a few ideas on how investing in real estate can be affordable, or even profitable, for those with kids in college. I have heard other ideas too, but this will get you started. Find a good real estate agent to help find a good property in a good location and the property may eventually become a profit center as your kid moves out (let's hope because they graduate) and others move in. At that point, you can hire a professional property management company to oversee the property if you choose... keeping the Mom & Dad co-sign, credit check and deposit rules in effect if you want. Or, after 4-5 years of college, you may find that you have the equity to sell and make a little money on the house... and that's not counting the tax breaks and money making/saving ideas above.

Ryan Cave, The "Caveman"
Truth, Honor & Personal Integrity
214-789-9366
www.CaveRealty.com