If you're a candidate for the Save For College Nomad model, you're probably short on sleep so I'll try to keep this short. It is just one of the five types of Nomads.
Save For College Nomads
The Save For College Nomad is typically a strategic thinking parent of young children with a good to great job who realizes that they need to be planning now to be able to pay for college for their kids while they're still relatively young. The sooner you start, the easier (and less expensive) it will be.
In the most vanilla of versions (and there are lots of variations), you would be buying a property, moving in and living there for one year before converting it to a rental property. You'll repeat this 10 times.
In an ideal world, you start this plan the year your first child is born (or earlier). I'll show you the math if you start a little later below (towards the end).
Save For College Nomad Model Assumptions
I've made some assumptions to create this model for you and I'll be explaining what my assumptions are. We can evaluate the Save For College Nomad model with other assumptions to see how that affects it as well and I will do that in the future for you.
I will tell you that I believe, deep down, that the assumptions I use are very conservative but let me know if you'd like me to run it with different assumptions.
I've modeled buying 10 houses over 10 years in this example. I am using an actual property that is currently for sale in Northern Colorado as of July, 2015. So, yes, these numbers are real.
You'll be buying the first property for $238,875. That price would include 2% in closing costs in the form of Seller Concessions.Read More