Let’s be honest- When it comes to college housing, it sure can get expensive! Fortunately, paying for 4 years of rent isn’t your only option when it comes to housing your college student! Nowadays there’s a growing number of parents that are actually purchasing real estate for their children to live in while attending college. Here are my top 4 reasons why I believe buying real estate in your kid’s college town could be a great investment!
Positive Cash Flow: Cash flow is the income you have after you collect rent monies and pay out all expenses. Netting a potential few hundred dollars a month can sure be nice! It’s also a benefit that you wouldn’t have if you decided against purchasing an investment property.
Tax Write- Offs: Want to reduce the burden of taxes? Get yourself an investment property! As a rental property owner, you are able to deduct nearly all expense you’ll pay to manage your property! The tax benefits are many!
Principle Pay Down: Each time you make a payment, you reduce your mortgage debt. This gets you closer and closer to owning your property debt free. So basically you’re building equity and wealth while you’re housing your college student.
Appreciation of Property: Historically, real estate goes up in value over time. For instance, if you purchased a $125,000 property, it would be worth approximately $140,688 at the end of 4 years (assuming a modest 3% year over year appreciation rate).
Ultimately, purchasing real estate for your college student can be an incredible investment! I’ve assisted so many clients in doing so and I’d be glad to help you as well!