• Client Info
  • Realtor Info
  • Seller Login
  • Contact

Boulder Property Network

Boulder Property Network

Boulder County Real Estate

  • Home
  • Search Real Estate Listings
  • Duane’s Timely Topics
  • Results Count
    • Why We Work by Referral
    • Testimonials
  • Our Team
    • Duane Duggan
    • Timmy Duggan
    • Barb Passalacqua
    • Kelsey Jensen
  • Blog & Podcasts
    • Weekly Video Podcast
    • Boulder Real Estate Blog
    • YouTube Videos
You are here: Home / Boulder Real Estate Blog / Real Estate as a College Savings Account

Real Estate as a College Savings Account

June 15, 2017 by The Boulder Property Network

The following article is a summary of content from the book, “Realtor for Life,” written by Duane Duggan, REALTOR and Author

Buying a rental property when a baby is born is a great way to save for college. If you buy a rental property with a 15-year mortgage when your child is born, it will be paid off and you’ll have three extra years to decide how to use this investment by the time your child is 18 and ready to go to college. The property could be sold, the taxes paid, and gains from the sale used as cash for college. Or, you could refinance it to pull cash out — tax-free — and use the cash for college. You could even keep the property free and clear to rent out, and just use the monthly cash flow to pay for college expenses. In many cases, if your child decides to stay in town to attend college, she or he may actually live in the house or property during college and rent out any extra rooms to roommates.

Hindsight is always perfect, but for example, if you bought a home in the Baseline subdivision in Boulder just east of the University in 1999 when your child was born, you would have paid approximately $200,000. When the child turned 18 in 2017, the home would be worth about $525,000 and you would have no loan on it. You would be able to use the options stated above. Right now, the homes in that neighborhood rent for about $1,800 to $2,200 per month. You would need to pay for mortgage, taxes, insurance and maintenance expenses, however the remaining cash flow could go towards monthly college expenses.

In the early years of the 15-year mortgage, there probably would not be enough rent to cover the whole mortgage payment. You might investigate other financing options, such as the 30-year mortgage, to help with cash flow in the early years of ownership, but then use mortgage acceleration techniques that I mentioned in my previous articles and at www.boulderco.com to be sure the mortgage is paid off by the time college starts.

About Duane Duggan:

Duane Duggan has been a Realtor for RE/MAX of Boulder in Colorado since 1982 and has facilitated over 2,500 transactions over his career, the vast majority from repeat and referred clients. He has been awarded two of the highest honors bestowed by RE/MAX International: the Lifetime Achievement Award and the Circle of Legends Award. Living the life of a Realtor and being immersed in real estate led to the inception of his book, Realtor for Life.

For questions, email Duane at DuaneDuggan@BoulderCo.com or call 303-441-5611.

Filed Under: Boulder Real Estate Blog, Duane's Timely Topics

Contact Us

  • This field is for validation purposes and should be left unchanged.

Blog Archives

Featured Listings

$389,700Just Listed!3100 Ridge RdNederland, CO 80466View Listing
$798,000For Sale!705 Club Pl.Louisville, CO 80027View Listing

See all of our listings.

Recently Sold Properties

$649,700Sold347 S. Jackson St.Nederland, CO 80466View Listing
$332,000Sold1601 Great Western i7Longmont, CO 80501View Listing
$280,000Sold3009 Madison AveBoulder, CO 80303View Listing
$863,000SOLD4634 Harwich StBoulder, CO 80301View Listing
$549,000Sold11950 Katherine AveLakewood, CO 80401View Listing
$999,000Sold2185 Floral DrBoulder, CO 80304View Listing
$1,599,000Sold6293 Red Hill RdBoulder, CO 80302View Listing
$499,700Sold2274 Spruce St Unit BBoulder, CO 80302View Listing
$865,000Sold4892 Darwin Ct.Boulder, CO 80301View Listing
$824,700Sold133 High Country TrailLafayette, CO 80026View Listing

Tweets by BoulderPropNet

Download our App

Boulder Property Network AppGet the Boulder Property Network mobile app to start your search for a new home right from your phone or other mobile device!

Download it here >>

Neighborhood News Report

How's the market? We can provide you with accurate information on the real estate market activity (Listings , Sales & more) in the area you are most interested in!

Get your Neighborhood News here >

Free Home Valuation

Free Market ReportBoulder Property Network can provide you with the information that you need to make a plan for your real estate purchase or sale.

Get your home valuation >>

Looking to Sell?

Looking to Buy?

Information for Investors

Recommended Reading for REALTORS®

REALTOR® for Life

by Duane Duggan

realtor-for-lifeWhat does it take to be a REALTOR® for life? This book provides first hand knowledge from one of the most distinguished and active careers in real estate. Duane Discusses his newly published book here.

Purchase on Amazon

© 2022 Boulder Property Network • RE/MAX of Boulder Inc.
2425 Canyon Blvd. #110, Boulder, CO 80302
800-825-7000 x611

Boulder Property Network on FacebookBoulder Property Network on TwitterDuane Duggan on LinkedinOur listings on YouTubeDownload our Listings App
Site Map

Posting....