With the cost of the priciest colleges now over $65,000 a year, and room and board costs increasing faster than tuition at many colleges, buying a rental property for your child and a couple of good roommates to live in can be a savvy college funding, tax and retirement move.
You can pick up all of the traditional tax deductions from owning a rental property and the rent the roommates pay can help pay the mortgage. When your child graduates in four years, and he will, right? Then you can either hang onto the rental and use it as a retirement home once its paid off, or you can do a 1031 exchange, deferring the tax on the capital gain so long as you buy another “like-kind” property, possibly in a location you prefer to retire to.
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.
