Having children is a blessing!
You want the best for them, including a chance for them to go to college when they finish high school.
These days’ college tuitions are out of control rising about 3% per year, higher than the rate of inflation.
If you are new parents today, what will the cost of college be in 18 years?
54% higher? 75% higher?
Possibly, we hope not.
However, what if there was a way to fund your child’s college education without spending very much out of your own pocket?
Enter real estate investing.
Imagine if you bought a small 4-unit apartment building today, rented it out for the next 18 years, letting the tenants pay off your mortgage, and you had a nice nest egg ready to fund a college education? Or possibly start a new business?
How would one go about doing this?
Step 1. Find a decent property that might need a little fixing up.
One of the best ways to find properties is to research them in the areas you would like to buy in and then mail out letters directly to the owners.
Be persistent and you will eventually find the right deal. Remember you make money when you buy, so make sure you do thorough research.
Step 2. Rehab the property and make it as tenant proof as you can.
This means to make sure the property looks amazing and will withstand the beating that many rental properties take.
Better to invest a little more at the start to reduce the costs of maintenance in the years to come.
Step 3. Find a property manager.
Let a pro manage your property.
The last thing you want to be doing is taking calls at 3 am for overflowing toilets.
Even if you are breaking even on the property every month, or even have a little cost, where else would $100 or even $300 per month make as much for your child’s education as an appreciating real estate deal?
Most people who end up losing in real estate are the ones who don’t do thorough research before they buy.
If you found a decent fourplex for $150,000 – $300,000 now, fixed it up and then rented the units out for 18 years, what would that property be worth?
Enough to send your child to college I bet!
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