College fund for child

[Dominic Cordaro]

Hello all,

Long time reader, first time writer.

On the most recent webinar Brandon Turner talked about how he bought a house to sell when his daughter to turn 18 and that it would pay for college.

I am interested in how that works?

Do you think he put 100% down, then plans to sell it later for a higher price? Or just a 20% down and 80% financed situation? If so, how much cash flow is really needed to make it a reality?

I'm very interested in doing this in my own life.

Thanks all

Dominic

[Scott Passman]

@Dominic Cordaro Brandon isn't talking about saving the cash flow for his daughter's education.  His plan in 18 years is through a combination of: 

1. House appreciation- Both forced through improvements and natural with appreciation and rising home values

AND

2. Loan paydown by the tenants will pay his mortgage down thus building him more equity

After 18 years Brandon plans to refinance the property to pull out the equity in the property which he can then use to pay for his daughter's education.  He could also choose to sell it, but if he keeps it then he can continue to have the property and still use the equity for other things.