One Of The Passive Income Opportunities That Could Lower College Costs

Would you like an example from the passive income opportunities list that could also possibly lower your child's college costs, give them some responsibility and even some cash?  And maybe even boost your individual retirement account?  If so, this page will interest you.

I've also posted a page about self directed individual retirement accounts.  In that page I included some more passive income opportunities. 

Maybe you already knew that you are allowed to own real estate within an individual retirement account.  Maybe you didn't however, because these options don't get the mainstream media play that stock mutual funds receive.   The reality is that yes, you may legally own real estate within your IRA.  We went into the mechanics in that self directed IRA page.

This Choice From The Passive Income Opportunities List Is A Dual Win

So you have a son or daughter attending college this fall.  It is away from home so they either will live in the dorms, which is pretty expensive and is after all "in the dorms Dad."  Or they could rent an apartment, which might involve you paying the rent.  Which is pretty expensive.

Think about this idea.  Real estate prices are cyclical.  They go up and down.  As I've written before, I don't agree with the media reports of bottoming out.  I think another drop is coming.  But bargains are available with some good research.  If you get one that you will hold for a few years or more, it could pay off.

A Winning Passive Income Opportunity

How about finding one of those houses, perhaps a four bedroom, two bath house near your child's college choice.  As you learned in that self directed IRA page, you can use part of those funds for the purchase price.

It will need some fix up for sure, but follow along and it may be worth it.  You make it clean and safe.  It doesn't have to have granite counter tops and bamboo floors.  It needs to be fully functional and secure.  Then you advertise three of the bedrooms for rent in the college message boards.  You can research the going rate to get the right number to seek for your area.

Be sure before going forward that you check on local multi-family regulations.  Some areas have none, but in many college towns, the rules are very specific.  If you followed the suggestions from the last paragraph to make it secure and functional, you'll most likely meet any regulatory demand.

Here is the big point.  You rent the rooms to the parents.  Their student will occupy the room, but it will be the parents who sign the lease.  And that lease spells out in detail the type of building you will operate.  You get to set the rules.  And you rent it for the full twelve months.  I know, they may not be in school for those summer months.  But by signing for the full year, they are guaranteed first shot at getting the room for the next year. 

You will be providing a safe environment for their student and they will be paying rent to you each month including the summer months.  A great deal for you and your future tenant parents.  Of course you also collected a security deposit up front from each renter.  Just in case the adult and their child are not on the same wavelength as far as personal responsibility.  If you have to fix something they broke, they also pay for it.

So you rent those three rooms to parents you've screened and now you have three rent checks coming in every month for the entire year.  Next you hire your own child for a small but reasonable fee to act as on site property manager.  They keep an eye on everything for you.  If they can do minor repairs, that is a bonus as well.  Your student gets some cash for their efforts and you have a home grown, responsible property manager on site.

The amount you pay them is considered a cost of business and is a deduction.  One of many allowed with these passive income opportunities. 

What Do I Do With It When My Son Or Daughter Graduates?

When your child graduates, you may just keep doing the same thing every year except now you get to rent all four rooms.  You can offer to pay some responsible person to be the on site manager.  There are plenty of good, young people to take on that role. 

If you bought the house right, you will be creating some very serious positive cash flow.  That cash flow will be taxed at the lowest rate and you'll enjoy the huge tax deductions afforded to rental real estate owners.  If the house is owned through your IRA, the tax situation is even better.  We discussed that part in the self directed account page as well.  It is one of the best uses of passive income opportunities.

Did you catch the first sentence in that last paragraph?  "You will be creating some very serious positive cash flow".  Something that you created?  You mean the federal government didn't have to "entitle" it to you?  Do you mean people can actually use their own initiative, couple it with hard work and can really provide for their own future?   Does congress know about this radical idea? 

These passive income opportunities have so much upside potential.  Our free market capitalism system provides everyone with courage and work ethic, the opportunity to build their own future. 

The government provides excellent tax incentives for housing because they have proven for decades to be abject failures when they try to manage housing projects.

Whether you buy a building as an individual, as part of a business entity or through your self directed IRA, this is one of the best passive income opportunities.  It is also a great way to add responsibility experience to your son's or daughter's resume.

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Just below is a quote from "Don't Sweat The Small Stuff" by Richard Carlson.  The chapter title is "Open Your Heart To Compassion." 

"Every day we are given hundreds of opportunities to practice compassion in action.  We can learn to be less reactive and live with more patience.

We can smile when others are serious.  We can drive our cars more carefully, pick up litter on the streets, recycle, and reduce our consumption.

We can resolve conflicts rather than create them, and we can become less judgemental and more inclusive.  When someone is aggressive, we can teach them to be more peaceful.  Instead of waiting for an example, we can be the example.

The more compassion that enters your heart, the happier and more peaceful you will become.  By knowing that you are doing your part to create a better world-whatever form that takes-you will fill any void that exists in your life, and you will begin to find the peace you are looking for."

What's New?

Just below is an article from Peter Schiff about passing the buck from one administration to the next.

Owning The Bubble

Just below is a link to look up your congressional representatives.   Let them know you expect accountability.

Congressional Representative Look Up