Paying for Kids College with a Rental
What's the strategy for buying a property and renting it out to build equity, and then using that equity to fund your kids college tuition? I watched one of Brandon's videos on it and now I can't find it. Any insight would be awesome! Thank you!
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I don't think there is "the" strategy out there. There are many strategies. The key is to know what you are doing and start early.
I raided my kids college funds and we bought each of them one rent property. We put each property in its own LLC and they were a member. We averaged about $25K out of pocket on purchase, but had equity of $40K the day we finished rehab. Each property has cashflowed about $4000/year and the average appreciation has been about $30K.
The properties have kicked off enough cash the kids probably won't need to sell their houses to pay for college (but that is their decision). Hopefully they will get out of college and still have a rent property kicking out income.