{"id":10657,"date":"2024-01-30T02:08:26","date_gmt":"2024-01-30T02:08:26","guid":{"rendered":"https:\/\/imsfund.com\/?p=10657"},"modified":"2024-01-30T02:08:26","modified_gmt":"2024-01-30T02:08:26","slug":"two-unique-ways-you-can-fund-your-kids-college-with-real-estate","status":"publish","type":"post","link":"https:\/\/imsfund.com\/index.php\/2024\/01\/30\/two-unique-ways-you-can-fund-your-kids-college-with-real-estate\/","title":{"rendered":"Two Unique Ways You Can Fund Your Kids&#8217; College With Real Estate"},"content":{"rendered":"<p> <br \/>\n<\/p>\n<div :class=\"{ 'hidden': $store.proContent.showFullPrompt() }\">\n<section class=\"px-4 relative border border-slate-200 mobile-toc lg:hidden\" x-data=\"{open:false}\">\n<button x-on:click=\"open = !open\" class=\"flex items-center gap-4 my-2 border-none w-full\"><br \/>\n<svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"h-6 w-6\" fill=\"none\" viewbox=\"0 0 24 24\" stroke=\"currentColor\" stroke-width=\"2\"><path stroke-linecap=\"round\" stroke-linejoin=\"round\" d=\"M4 8h16M4 16h16\"\/><\/svg><\/p>\n<p class=\"font-semibold text-slate-800 text-base m-0 js-toc-ignore\">In this article<\/p>\n<p><\/button><\/p>\n<\/section>\n<p><span data-preserver-spaces=\"true\">Got kids? Then, eventually, you\u2019ll (most likely) also have college bills. And spoiler alert: They will be big.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">While it\u2019s certainly not a parental requirement, footing the college bill (or any part of it) and allowing your kids to graduate debt-free is an enormous gift\u2014one of the biggest you can give your children. Conventional savings vehicles, like 529s, are amazing tax-free-withdrawal vehicles, but they\u2019re not the only way to get to the finish line. You can also use your real investing superpower to build the college trove, and you don\u2019t need to have started saving in utero (although that always helps)<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Here are two ways to fund college with real estate, whether you\u2019re starting early or a little later.<\/span><\/p>\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">1. Starting Early: Buy a Single-Family Home When They\u2019re Born<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">Each kid \u201cgets\u201d their own home. Put 20%\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/down-payment\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">down<\/span><\/a><span data-preserver-spaces=\"true\">, buy something reasonable and steady, and rent it out. This is base-hit, not home run time\u2014you have almost 20 years for the thing to appreciate, after all.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Then you can do one of two things: squirrel away the yearly\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/rental-property-cash-flow-analysis\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">cash flow<\/span><\/a><span data-preserver-spaces=\"true\">\u00a0(in a 529 or another tax-deferred vehicle) to pay for school, or keep (reinvest) the cash and, 18 years later, sell the house entirely and likely have more than enough to pay the bills and then some because of your smart focus on\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/what-is-appreciation-in-real-estate\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">appreciation<\/span><\/a><span data-preserver-spaces=\"true\">.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Even better (and more generous), use the cash flow you\u2019ve socked away for two decades to fund college, then transfer ownership of the single-family home to your college kid when they graduate. Work with your legal team to buy it initially in a trust or an\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/guide-starting-llc\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">LLC<\/span><\/a><span data-preserver-spaces=\"true\">\u00a0where your kids are already named so you don\u2019t pay a transfer tax. Now you\u2019ve gifted them their first income stream before they even have their first W2.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Of course, you\u2019ll teach them how to handle this revenue\u2014how to save it or reinvest it\u2014so your gift pays massive dividends. Do this for each kid, and you\u2019ll set them up for massive success.<\/span><\/p>\n<div class=\"justify-center \" x-data=\"{ IabAdad_block_: popAd(['r720x90'], '1') }\" :class=\"IabAdad_block_.linkURL ? 'flex pt-8' : 'hidden'\">\n<a x-show=\"https:\/\/www.biggerpockets.com\/blog\/IabAdad_block_.linkURL\" x-on:click=\"adClicked('https:\/\/www.biggerpockets.com\/blog\/how-to-use-real-estate-to-fund-college-costs', IabAdad_block_.sponsor, IabAdad_block_.title, IabAdad_block_.id, 'blockAdClicked', 'blockAd', 'postContent')\" target=\"_blank\" x-init=\"&#10;      analytics.track('blockAdLoaded', {&#10;        referrer: 'https:\/\/www.biggerpockets.com\/blog\/how-to-use-real-estate-to-fund-college-costs',&#10;        sponsor: IabAdad_block_.sponsor,&#10;        ad_title: IabAdad_block_.title,&#10;        ad_page_location: 'postContent'&#10;      })&#10;    \" x-intersect:enter.once=\"adViewed('https:\/\/www.biggerpockets.com\/blog\/how-to-use-real-estate-to-fund-college-costs', IabAdad_block_.sponsor, IabAdad_block_.title, IabAdad_block_.id, 'blockAdViewed', 'blockAd', 'postContent')\" rel=\"noopener\"><\/p>\n<div class=\" hidden sm:block\">\n<img class=\"m-0\" :src=\"https:\/\/www.biggerpockets.com\/blog\/IabAdad_block_.r720x90\" :alt=\"IabAdad_block_.r720x90Alt\"\/>\n<\/div>\n<div class=\"block sm:hidden\">\n<img class=\"m-0\" :src=\"https:\/\/www.biggerpockets.com\/blog\/IabAdad_block_.r320x50\" :alt=\"IabAdad_block_.r320x50Alt\"\/>\n<\/div>\n<p><\/a>\n<\/div>\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">2. Starting Later: House Hack in Their College Town<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">You may need to rely on your 529 or other savings with this strategy to fund the first year of college since you probably won\u2019t be able to predict where they\u2019ll enroll in advance, but once they decide, turn on the\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/real-estate-investing\/house-hacking-strategy\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">house hack<\/span><\/a><span data-preserver-spaces=\"true\">\u00a0engine.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Sometime during your kid\u2019s first year, buy a duplex or house with multiple bedrooms in their college town. Make sure it\u2019s someplace that college kids actually want to live, close to campus and amenities. (Your kid can help advise on this.)\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Then, when your kid is allowed to move out of the dorms, move them\u2014and their (respectful, well-behaved) friends into the rental\u2014one bedroom per kid. Collect reasonable rent from the friends and\/or from the tenants in the other half of the duplex and enjoy free room and board for your kid while using the proceeds to pay the rest of those college bills.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Is your kid good at finding roommates and keeping an eye on repairs? Offer to provide them with a little spending money in exchange for basic property management. Some universities will eventually allow you to declare in-state residency after a bit (if they\u2019re going to college out of state), which will save you even more on bills. Four years later, decide whether you want to keep the original college house or rinse and repeat wherever they\u2019ve decided to go to graduate school.<\/span><\/p>\n<p><em><span data-preserver-spaces=\"true\">What did we miss? How are you planning to use real estate specifically to fund your kids\u2019 college education?<\/span><\/em><\/p>\n<div id=\"hero-block_62ee867235a1c\" class=\"first:mt-0 hero-block py-4    has-background has-slate-900-background-color has-text-color has-white-color\">\n<div class=\"gap-10 lg:gap-20 flex flex-wrap lg:flex-nowrap max-w-screen-xl mx-auto px-4 relative lg:items-center \">\n<div class=\"relative z-30 lg:w-2\/3 \">\n<main class=\"py-4\"><\/p>\n<p class=\"has-theme-slate-color has-text-color has-large-font-size\"><strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-white-color\">2024 Live Virtual Summit<\/mark><\/strong><\/p>\n<p>Struggling to invest or feeling unsure about the 2024 real estate market?\u00a0Our first-ever BiggerPockets Live Virtual Summit was created just for you!\u00a0Led by your favorite experts, dive into four mind-blowing nights of pure real estate inspiration and make 2024\u00a0<em>your<\/em>\u00a0year for real estate success.<\/p>\n<p><\/main>\n<\/div>\n<div class=\"lg:w-1\/3 first:mt-0 relative h-full lg:flex lg:items-center\">\n<img decoding=\"async\" class=\"object-cover w-full relative z-20 my-0  rounded-md hidden lg:block\" src=\"https:\/\/bpimg.biggerpockets.com\/https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/01\/2024-Live-Virtual-Event-9.png\" alt=\"2024 Live Virtual Event 9\" title=\"Two Unique Ways You Can Fund Your Kids' College With Real Estate 2\"\/>\n<\/div>\n<\/div>\n<\/div>\n<p class=\"italic\"><b>Note By BiggerPockets:<\/b> These are opinions written by the author and do not necessarily represent the opinions of BiggerPockets.<\/p>\n<\/div>\n<p><br \/>\n<br \/><a href=\"https:\/\/www.biggerpockets.com\/blog\/how-to-use-real-estate-to-fund-college-costs\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In this article Got kids? Then, eventually, you\u2019ll (most likely) also have college bills. And spoiler alert: They will be big.\u00a0 While it\u2019s certainly not a parental requirement, footing the college bill (or any part of it) and allowing your kids to graduate debt-free is an enormous gift\u2014one of the biggest you can give your [&hellip;]<\/p>\n","protected":false},"author":5,"featured_media":10658,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"fifu_image_url":"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/01\/cornell-1024x517.jpg","fifu_image_alt":"","footnotes":""},"categories":[9],"tags":[],"class_list":["post-10657","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog"],"_links":{"self":[{"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/posts\/10657","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/comments?post=10657"}],"version-history":[{"count":1,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/posts\/10657\/revisions"}],"predecessor-version":[{"id":10659,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/posts\/10657\/revisions\/10659"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/media\/10658"}],"wp:attachment":[{"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/media?parent=10657"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/categories?post=10657"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/tags?post=10657"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}