Buying house for Child to help with In State Tuition Costs

[Peter Schuyler]

My REI lawyer on BP said this might work, I wanted to get some feedback.

• My daughter will be attending a University in a different state next fall
• We buy a small house for her this year, and put the title in her name in that State
• It rents out year one and she generates in state income and claims this on her taxes (lowest tax bracket)
• Freshman year she lives in dorms as mandated, she switches her drivers license and car insurance to that state year one.
• Sophomore through Senior year, she moves into one bedroom in the house, rents out the others to friends and still collects rental income and pays local state taxes, expenses, etc and has a place to live.
• She seeks in state tuition in year two after owning a house in state, collecting income and filing taxes with the state.
• Her tuition, room and board is being paid by her 529 account in her name, so technically she is "emancipated" from mom and dad.

Has any one tried this to reduce the costs of being an out of state resident during college.  She basically becomes an in state resident by living in state, owning a income property and filling taxes.  The mortgage is in my name (private lender basically)

Pete