The college transfer: A money making opportunity

As the school year draws to a close, many of us will spend our summers assisting our offspring with the transition to life in their new university communities. You're in luck if you're looking for a place to stay near Arizona State University.

In the Tempe real estate market, townhomes, condominiums, and even multi-million dollar mansions are all available. Why not put that money into an investment property for yourself instead of handing out rent to your child? What are the pros and cons of this setup, besides the obvious benefit of having a manager already in place to keep an eye on cash flow?

Every family with a college-bound kid has the same challenges, including the need to choose an appropriate living situation that their child would like without breaking the bank. You wish for his or her financial stability during the semester.

You probably want a location that's close to the university to cut down on transportation costs. You're hoping that your child's future roommates won't be into drugs, excessive partying, or drinking, and so on.

You won't have to worry about any of these things if you buy a cheap house and rent it out to students, including your own child. You'll be able to exert as much or as little influence as you choose. Most of your concerns will go away if you just keep reading.

For example, you may be certain that your kid has a safe and comfortable place to live because of the rental students who are paying your mortgage. Halfway through the semester is too late to give them notice.

Your kid can have a say in the house rules; if he's a morning person, maybe he may have silence after 11 o'clock. You don't have to worry about the high cost of keeping a vehicle and the constant fear of finding it wrapped around a lamppost if you live no more than 20 minutes away from the school on foot. Finally, you and/or your kid will have the last say in how the tenants conduct themselves by getting to draft the regulations about parties, etc.

This proposal is risk-free, and it will also increase your financial stability. You might like how easy it is to get money for a second home this way and decide to stay with the program even after you get your degree.

Though a competent real estate agent will be there to assist you, let's get down to the nitty-gritty of the process. Your existing home's equity might serve as collateral for a second property in Tempe. Maybe one of you is retired and you can use the other's pension as "income," or maybe you're both gainfully employed, in which case finances should be a breeze!

If you're looking to acquire an investment property, your real estate agent may provide you with advice on layout, bathroom, and door placement considerations. If there is a living room or other common area, a master bedroom with two windows may often be partitioned into two smaller bedrooms. If you send or email a local real estate agent a list of the things you want in a home, they may be the first to let you know about good homes in your area.

Given the current low mortgage interest rate and the large number of available properties, now is an excellent time to purchase a second home. There are fewer sellers than buyers right now. When you're not making a really personal decision, it's easier to be more pragmatic. However, if you retire to Arizona, Tempe is a wonderful spot to "winter," so do what makes you happy. To beat the heat, residents of Tempe go to the city's various parks, swimming facilities, and the massive Tempe Town Lake.

Your child's decision to attend college far from home need not be seen as a financial burden; in fact, it may offer you tremendous delight. Purchasing a vacation property in preparation for retirement is a smart financial move. Thankfully, they decided to attend college in Tempe rather than Chicago.