Fund College for through investment Property

[Jonathan Bombaci]

We just welcomed our first child Baby Lily to the family and that got me thinking about college. I know this isn't an unusual thing on this site so I wanted to post my math and ask a couple questions to get some feedback. 

Math Assumptions:
- My college today costs $26,150 per year (tuition, fees, room+board). Assume its a 4 year degree and cost of college appreciates 5% per year that means it'll cost $271,250 for 4 years of school 18 years from now. 
- Real estate appreciates at 3% per year. So that means I have to buy a property worth $158.177 today for it to be worth $271,250 in 18 years.
- It needs to be cash flow positive on a 15 year mortgage so it's paid off by the time she needs it.

Questions:

- What type of property should I be looking for?
     A) I'm leaning towards a 3-4 family so it has good cashflow. 
     B) Could also do a condo which would be easier to manage if she decides to keep and self manage it through college. 

- I want to buy the property at a discount so should I: 
      A) buy a property that appraises $160,000 for $140,000 and use the appraised value for the math? 
      B) Buy a property appraised at $180,000 for $158,000 and use the purchase price for my math?
      C) Do you have other advice?

- What should I do with the cashflow from the property for years 0-18, before she needs it for school?
A) Think of it as her money and let it accrue in a Roth IRA for her.
      B) Use it for her, thinking Birthday and Christmas gifts, or to fund extra curricular activities (Dance, soccer, hockey).
      C) Keep it as a "management fee" and use it to help fund my retirement, living expenses, and/or family vacations. 
      D) Something Else....  
  

Thanks for your time and feedback!