Cash out refi for college tuition
Hi - I have 7 single family properties I purchased each year following the birth of my daughter in 2002. I skipped investing in a 529 for college knowing that I could use investment properties to fund college. 3 of the properties’ mortgages have been paid off with the others being paid off over the next 3 years. After buying the 3rd property we put all into an S Corp as advised by our accountant, but now I’m worried that paying for college won’t be a valid reason for taking a cash out loan from a business property.
So my questions are:
1) Can I still take cash out from a business property for personal reasons? Is college a valid reason or will I need a different one?
2) I plan to take a new loan each year over the next 4 years (my daughter is on her own for grad school). The reason for the multiple loans is that the properties’ value is between 60-80 each and tuition with fees is around 50k each year. Any reason why I won’t be able to do that? My credit score is good, 750, no credit card debt, decent salary and just my primary mortgage and car loan. For the original loans I needed to be the guarantor so not sure if that’s still the case.
3) Based on my calculations, we could go with either a 10 or 15 year term with enough cushion for expenses and minimal cash flow. I’m 47 and thinking more about retiring, definitely no later than 62. Any thoughts on which term to choose or mix them up?
Anything else I should be thinking about? Any advice would be appreciated.