Cover College Costs With Real Estate Investments

For those parents or grandparents navigating the hurdles of college costs, real estate investments offer a sensible avenue for financial support. Consider the following strategy.

1. Finance the purchase of an investment property with a fixed-rate 15-year mortgage.
2. Rent the property, using the income to pay down the mortgage.
3. Sell or refinance the property, and use the equity to pay college expenses.

If you make the investment when your child or grandchild is a baby and use the rental income to pay down the mortgage, it could be paid off by the time he or she graduates high school.