@LuFins-Dad said in Is this a stupid idea?:
In 2 years, Luke’s going to be living off campus for a year as the school he’s at doesn’t have enough dorm housing for seniors and as the school continues to grow, that will spread into the juniors as well. We’re currently spending about $12K a year on room and board.
Houses are currently renting around the campus at about $800 per bedroom and 3 bedroom houses are selling for roughly $200K. Would it be completely stupid to take the room and board we’ll be paying that year anyway and put it and a bit from savings as a down payment? Mortgage would be about $1200, so $800 per month for the other two bedrooms would cover the mortgage and utilities. After Luke graduates, that’s 3 bedrooms at $2400 per month, now you’re covering maintenance…
Now college kids, yeah, I get it, but I can trust Luke for the one year, and keep the rental restricted to Seniors going forward… Get 5 years appreciation and sell…
I would be looking for a 2 bedroom, ground floor condo about 5 to 10 miles away from the college.