As we approach the end of the school year a good way to gain some buyers is to talk to parents with children going to college. Talk to them about the FHA Kiddie Condo Program. This is where the child can own a condo near campus, charge roommates rent, and potentially pay off almost $45,000 in college debt when the graduate.

The FHA allows non-occupant co-borrowers. This means parents can purchase a condo using their credit and their income but not live there. This isn't a second  home and not an investment. That is important to understand because the interest rate is calculated similar to a primary residence. The co-signer, in this case the child has to live in the property and is classified as their primary residence.

Once they have received an approval the only thing to do is look for the right properties. Let's say they can purchase a 2 bedroom condo near campus for $150,000. Assuming a 5% annual appreciation in value after four years the condo will be worth almost $183,000. That is $32,000 in equity while going to college. Also, don't forget that the loan is being paid down during this time. Let's assume that this part of the equity is a wash to cover the cost during the time of sale.

With sky-rocketing college tuition the appreciation in the condo can go towards paying off debt or a nice down payment on their first home. Taking it a step further, they could re-finance the property and turn it into a rental unit.

Not a bad way to start life! Something to think about.