All Forum Posts by: Peter Schuyler

Start now, you will reap the benefit of appreciation, get equity buy down, cash flow if your smart about the buy, and interest rates are still decent.  I just bought a duplex @ 4.5% with 20% down and look forward the the positive cash flow even after 2018 bubble if it really happens.

Thanks for all the wonderful feedback and ideas.

She was born in Colorado, grew up there as a pre-teen, so she knows the area, but we had to move to TX for my job recently, she wants to go "home" basically.

She got accepted to CSU and wants to move and live in FOCO.  CSU makes you attend freshman year inside the dorms, but she would love to live off campus years 2-4.  Buying her house and letting her rent it will be the target regardless of any break in tuition as this will help her offset the costs long term.

I was not trying to cheat the system, merely trying to figure out that how this native born Coloradian would like to return home, be a resident again, and going to college full time does not seem to work without domicile, so a property might be the ticket.

I'm going to pursue this topic more as it does not hurt to help her setup her new life in Colorado and allow her to try to come out of college without 160K in debt.

 I'm starting to see the flaw in the plan now, I guess a property could at least offset some of the costs of living in state.  She can not work full-time, be off my taxes and go to school full time, and I know we are not the first family to deal with out of state tuition costs which help fund the in state residents.  What sucks is we used to live there for 10 years and paid income tax as a resident, but that is a wash now.

We have considered picking up and moving to help her out, but we get bit by the Colorado Income Tax on our W2 income and the cost to move plus 4 years of Income tax would probably be a wash for saving, she will just be stuck with a large student loan like others have done, is just a shame college is so expensive, 40-50K a year for out of state.  15-25K in state.

 Hey Rick, you do have some valid points.  I was a Colorado resident from 10 years, then moved to Texas for the last 9 years.  CSU has one of the best Vet programs in the nation is why she wants to go, we have saved up some money for her, but the 160K total for out of state is out of our reach.  Buying her a property and having her off our books is the plan, she would have to have a part time job to pay for incidentals and I would not claim her on my taxes, so she is not my dependent anymore.  If she plans to move and live in Colorado, I do not want the state fighting me that she is not a resident, thus the reason for the activity to buy a rental property.   Maybe this plan is way too complicated, and she might end up paying the difference in out of state tuition regardless.  Texas does have good schools, my other daughter goes to Texas State University so I agree with you.  I did not think I was cheating, if so I would not ask for comments in a public forum.

Thanks

Pete

 So your daughter could not claim residency because you claimed her on your taxes as a dependent?  Was she paying for her college costs also?

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

Im not sure this is true, but my lawyer suggested the following to help ease out of state tuition for my daughter.  Here is my setup, comments welcome.

• My wife and I live in Texas, we use to live in Colorado years 1997-2007 in Parker, CO
• My Daughter will be attending CSU Fall 2017 and plans on staying in Colorado for the foreseeable future, she wants to live and work there but can not support her self while in College.
• I buy a small house in FOCO or Loveland for my daughter using my credit, my down payment, 2-3 bedroom max.  She is not the party type, but I know the risks are there.
• Put the house title in my daughters name and have her claim the income on her Colorado State Taxes, she owns the property and generating income as a resident and taxable at her tax rate (smallest).
• She switches her Drivers license and Car Insurance to Colorado, she is now a resident with an income property she can live in years 2-4 after one year in the dorms.
• The wore case is CSU does not grant her residency and she offsets the cost of living during years 2-4 with the rental income and has a place to stay.

I think Im missing something, and would love to know if anything has done this, Parents out of state, child claimed as in state, etc.

Pete

@Branden Korona,

Can you share your recent experience with NetWorth Realty for a year follow up, or have you posted in other threads about the success/downsides?

Thanks

pete