Consider your exit strategy as you purchase a college condo

With Colorado State University here in Fort Collins, we often have parents purchasing housing for, or with their students for use during the time the student attends Colorado State. In many cases, the parents are able to pay cash for the property. When making a cash purchase, one of the things many parents overlook is the sale on the other end, after their student graduates.

Most of the non-cash student purchases that take place utilize the FHA "kiddie condo" program in which the parents co-sign on the loan with their student. However, most of the condo complexes near campus have a higher non-owner occupancy rate than FHA will allow for a property on which they will lend. Therefore, this will likely shrink the potential buyer pool for the unit when the student graduates and the parents are ready to sell.

Just something to consider this fall as your kids head off to school.