Kid going to college - RE strategy options?

[Shaun Ng]

My daughter is going to college this fall. I'm exploring RE strategies in her college town for the next 4 years and potentially beyond. I can't seem to find anything in past posts. Options that came to mind:

1) buy and rent to my daughter (at market rate) and her friends

2) rent a property and sub-lease extra rooms to my daughter and her friends

3) daughter to buy on her own and sublease additional rooms to her friends

Assuming zero price appreciation in the next 4 years, what are the pros/cons for taxes and other considerations?

Thanks! 

[Nathan Gesner]

I wouldn't recommend giving the property to your daughter. She may not be capable of managing it well, particularly while living there. And it could add to whatever stress she's feeling with being away from home, school, relationships, etc.

I would purchase the property yourself and rent it to your daughter and other students. Again, be careful with mixing relationships and business because that can put your daughter in a tight spot. Let your daughter be your on-site manager. If she does well and shows interest in it, you can consider giving her the rental as a graduation gift surprise and help her get started building long-term wealth.