Investing in townhouse for investment and college kid pad

[Deb Sala]

Hi All- this is my first post and I am hoping it's in the correct forum!  As the title says, I am looking to invest in a townhouse as an investment and as a place for my son to live while he's away at college. I am spending a lot on rent and it's a waste when I could pick up a 3 bedroom and rent out the other two rooms thus covering all expenses. He will definitely not finish in 4 years, so it's a necessary investment I think. The college is in a town that is outpacing the state for growth, so I expect appreciation over the next several years. Demand is high.

I am trying to figure out a few things. Firstly, do I include him on the title? We live in Florida which is a homestead state and putting him on the title would entitle him to homestead the property offering tax savings as well as protection from lawsuits.  Secondly, do I apply for the loan as a "kiddie condo" loan, a second home or an investment property?  I am aware that the interest rate will run me about 1.5% more if it's classified as an investment property. If I make it a second home or a primary home (in the kiddie condo example), can I still write off all the same things on taxes that I get with an investment property? 

Any insight into which approach offers the best tax advantage would be extremely appreciated! Thanks.