Investment Property while children attend college

[Domingo Olivares]

I have heard of some investors buying an investment property and allowing son/daughter to live in house and rent out other bedrooms. How has this worked out for some of you? Is this a sound method when your children go off to college? Any advice/insight would be appreciated.

[Rich Weese]

Here is a slightly different viewpoint on the subject. I have a grandson who has come and worked with me several different times on learning how to buy and rehab foreclosures, and this Christmas vacation came and learned quite a bit on selecting properties and construction of homes. He then went back to Houston where he is in his second year and is looking for a home to buy for himself. He has already had several years experience with me as well as his mother being a real estate broker.

He receives quite a large sum each semester on his full ride scholarship that may be used for housing and board. When he buys the four bedroom home to live in, he will be able to rent out the other three bedrooms and " LIVE FOR FREE". ( I had to capitalize, since this is the name of one of my chapters!) He will also continue to receive the scholarship money to use towards other investments for the next three years.

Originally, he was spending a lot of time with me looking at owner financed properties. His parents eventually decided that they would cosign with him providing he found the property that they liked also. He already has the additional three roommates, since they are sharing a location currently and will have some input into what is purchased.

I think a lot would also depend on how capable the child was in maintaining order, cleanliness, and ability to collect rent. Rich