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Congratulations, your daughter or son have been accepted to UC Davis!
If you are looking for an investment in Davis Real Estate, let us suggest a strategy that many parents use to provide a great housing option while lowering the overall cost of sending a child to college:
The rent paid by the two students in the guest rooms will offset some of the mortgage and maintenance expenses.
Your child acts as property manager seeing that the property is kept in good condition and collects the rent.
You get to take depreciation against your taxes on the home. Expenses are offsets against the rental income. You might even pay a small fee to your student to act as property manager. This payment is also a deduction against rental income. *
This is a basic strategy that we have seen used successfully many times to help offset some of the expenses of putting a child through college.
*Of course this is just an outline. We recommend that you consult a professional about the facts on depreciation and deduction of expenses on a rental property in California.