Many homeowners, as it happens, prefer to move with the school year, so you shouldn't have any trouble finding a seller who would be happy to wrap things up with a summer closing.
Buying With Kiddie Condo
Ms. Lank: I have an opportunity to purchase a large home divided into two complete living areas. The home is within one block of the university my daughter is attending. The home value in the market has held steady even in the current slump.
The question is from a tax and finance side. What is the best way to provide the down payment for the property? Should I loan my daughter the money and allow her to purchase under the FHA Kiddie Condo program or should I make the investment myself? The house would provide the room for her to pay the note and associated monthly fees as well as enough income to pay her tuition. -- Via e-mail
Answer: You're not asking whether it's a good idea to buy, but I'll start by cautioning you that it's not easy being a landlord, particularly in a college situation. It takes skill and hard work to manage student property without getting into trouble. And you might be stuck as an absentee landlord after your daughter graduates.
If you do intend to become an investor, I'd advise lining up your own real estate attorney and CPA ahead of time. And read some books on property management.
Then, if you do decide to go ahead, the FHA's "Kiddie Condo" program, in which you and your daughter become co-owners, is an excellent opportunity. It requires a much smaller down payment, and carries a lower interest rate than you'd find if you applied for an FHA mortgage on your own as an investor. And, of course, it isn't limited to condos.