We buy houses in Woburn MA and we have heard a lot from people who want to invest in real estate. If you have kids or grandkids, you might have put some thought into college planning. Or maybe you are going to school yourself and want to find a way to help offset your costs. Tuition and living expenses are high for students. By investing in real estate right now, you will easily be able to cover the costs of going to school. As Woburn MA home buyers, we will offer tips to start college planning using real estate in Massachusetts in our latest post!
How To Start College Planning Using Real Estate in Woburn MA
How Much Do You Need To Save in Massachusetts?
It depends on the school and your child’s living situation. Even if your kids don’t plan on college, starting out in the world with a small nest egg can help them find the path they’re meant to be on. Even saving a few thousand dollars can get them off to a good start, and starting early will help those amounts grow over time.
Real estate returns are high. When your investment is managed correctly, you’re likely to see it outperforming the stock market at over 10% annually. Every property is different. You should have a firm goal in your head, and if the returns aren’t there, sell it for a better performing property!
What Kind Of Woburn Property Should You Buy?
This all depends on how much you are comfortable taking on. Typically single-family rentals perform well, but for someone ready to take on a bit more, a multi-unit building might be the way to go. No matter how you decide to invest, make sure you are purchasing a property within your means. You should not over-extend yourself for the sake of a long-term investment.
One choice could be using an FHA loan to purchase a 4-plex with 3.5% down. You would need to live in one of the units for two years, then you would have the option to rent the 4th unit out as well. While living there, you should essentially be able to live “rent-free” as the other tenant’s monthly rent payments will cover your mortgage payment.
How Do You Maximize Your Money in MA?
You can maximize profits in a number of ways.
- By selling the house at the right time
- By generating top dollar for your rental property
- By refinancing (you will pay interest but avoid tax penalties such as capital gains taxes)
For example, you could buy a home now, rent it out, letting your tenant cover the mortgage for the next few years. Once the property is paid off, sell or refinance. Use the proceeds to pay for college or anything else.
Another great strategy to help your kid out when they are off to college is to purchase a rental property for them to live in. You could purchase a single-family house with multiple bedrooms or even a small multi-family property. The rent collected should cover the mortgage, take care of your child’s room and board while they are in school and possibly bring in some extra cash to buy books and other supplies they will need. Once the property is paid off and they are out of school, the property could be sold to help finance a home of their own.
Cash For Houses In Woburn MA
One of the biggest benefits? A great example.
Showing your children what you can accomplish by planning is an incredible life lesson they won’t forget. They are never too young to learn about smart investing practices and the benefits received when coupled with hard work. By sharing with them the tools and benefits of intelligent real estate investment, you are helping them gain the knowledge to plan for their future.
It’s really good that you’re reading this page and exploring your options. We are homebuyers in Woburn MA and we help people like you to find creative solutions. Sell your house in Woburn MA.