Follow the “Big Boys” -- Investors have spent at least $1.5 Billion on US Student housing properties this year (2007) according to an article that appeared in the San Francisco Chronicle on September 16, 2007

It appears that Student housing is always in demand, regardless of economic conditions such as job growth, interest rates that sway the demand for commercial properties and values of offices, apartments and other rental properties.

The process for this real estate investment, is to locate and purchase an apartment building or a large house (that can be remolded to accommodate more students) close to a University.

If the University has been there for 100 years; the mode of thinking is that, it probably will be there for another 100 years -- and more and more kids are headed to college these days. So on a scale of 1 to 10 this is considered a very good investment.

Even if the real estate market is a little unstable - your school year lease to the Students, does not have to be. Get a good real estate agent and if necessary an attorney to review your purchase documents.

You will build equity, you will get the tax write offs on mortgage interest, real estate taxes, upkeep, management fees, maintenance, travel to the property and a number of other deductions including depreciation, on a Schedule E, of your 1040 Tax return each year.

The equity that builds over the years can help you finance your own child’s college education, even if the monthly cash flow is not what you would like for it to be.