Do you have children going to college next year? If you do let them learn another lesson. Let them become property manager of their own building. That’s right. They can live rent free if you shop smart and make a good investment.

Think about it? If you have a child attending UC or Xavier you could buy a two or four family building in or around Clifton, North Avondale or Norwood. Your child could have free rent if they find 2 or 3 other students or friends to rent to.

If your total investment was $200,000. With FHA financing you only need 3% down payment. That would be $6,000.00. It will cost you about $2,000.00 closing costs and about $500.00 for inspections. Your total investment would only be approximately $9,000.00 - $9,500.00.

If you finance $194,000 at 7.5% interest your Principal & interest payment will be $1,356.48. Factor in estimated taxes at $200.00 per month and $100.00 for insurance.

If you have 3 other students pay $550.00 per month that will make your PITI (Principal, interest, tax & insurance) payments for you. Your child lives rent free and you have a nice future investment. Let your child collect the monthly rent and make the payments. You could even have the building put into their name. This is a great way for a young person to get a firm start in a future of real estate investing. They graduate and already have an income coming in not to mention the education they will learn by being a property manager for 4 - 5 years…through their college years.

The numbers used in this post are only for demonstration purposes. They are estimated and not intended to represent any firm real prices or terms. The examples used in this post are just that. They are examples, not to say the example used couldn’t become a reality.