Saving for College
Buy a house to save for college! Instead of setting up a typical college fund when your kid is young, consider buying a rental house instead. If you buy a good investment property with a 15-year mortgage when your kid is a toddler, it will be paid off by the time the kid goes to college. In addition to the tenants paying the mortgage, you’ll also have 15 years worth of appreciation. Sell the rental when it’s time to start paying tuition and you’ll be all set! If you can’t swing a 15-year mortgage, even a 30-year will bring you a nice pile of savings to pay for tuition. Don’t worry if your kids are older – if college is at least five years away, this can still be a good investment strategy to help with tuition.