- Joined
- Jul 13, 2011
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I am looking at purchasing a condo for medical school. The condo that I am looking at is at a prime location within walking distance of the school. The condos are fairly new (<10 years old) and there are already many medical students who are living there already. I'm guessing most condos will go for $130k-$170k and have two bedrooms. I would live in one room and rent out the other room and me and my roommate would share the cost of utilities. My dad has agreed to buy the condo in his name so me and my roommate would both pay him money and he would pay the mortgage.
As part of this, my dad wants me to borrow money from FAFSA to pay him for the rent. At the end of my four years at medical school, my dad would sell the condo. We don't think that it would be too difficult to sell the condo because of its prime location. With the money he would first pay off the rest of the mortgage and then give me the remainder of the money (profit), which I could then ostensibly use as a down-payment when I buy a house for residency, or I could use it to partially pay off my student loans in one big chunk.
What do you guys think about this plan? It looks good on paper but I'm not sure if there is some major flaw which I am overlooking. (1) Do you think there will be enough "profit" left over at the end of the four-year period to where there will be a substantial return on the investment? (2) Will the aggressive interest on my student loans completely negate any short-term savings I might have from buying this condo? I would love to get your input. I'm open to new ideas if you can think of a better way to handle the situation.
As part of this, my dad wants me to borrow money from FAFSA to pay him for the rent. At the end of my four years at medical school, my dad would sell the condo. We don't think that it would be too difficult to sell the condo because of its prime location. With the money he would first pay off the rest of the mortgage and then give me the remainder of the money (profit), which I could then ostensibly use as a down-payment when I buy a house for residency, or I could use it to partially pay off my student loans in one big chunk.
What do you guys think about this plan? It looks good on paper but I'm not sure if there is some major flaw which I am overlooking. (1) Do you think there will be enough "profit" left over at the end of the four-year period to where there will be a substantial return on the investment? (2) Will the aggressive interest on my student loans completely negate any short-term savings I might have from buying this condo? I would love to get your input. I'm open to new ideas if you can think of a better way to handle the situation.
