With the growing cost of attending college, its getting more difficult to save for children's college education even if it is your local university like ASU and your are an in state student. There are many ways to save for a college education. You can buy bonds, stocks, bank CD's, and many other ways that are safe but, will you save enough at 3-5% per year? Now consider real estate. So if you have some money for a down payment like 5-10%, or even if you don't have too much money but your have good credit then an you will be able to obtain financing up to 100%. Lets look at two scenarios, one is conservative at 3% which is the national average and in line with inflation and one based on historic appreciation in the Phoenix Valley at 4.5%.
Scenario 1. House 100% Financing (Its very possible with good credit, even if its for investment) Purchase Price $230,000 @ 3% and 4.5% Monthly Payment $1,847.65 Average Rent $1,600 (average over 15 years, based on 4% inflation rate for 15 years.) Value of Home After 15 Years. At 3% Appreciation = $342,752 Less Purchase Price= $230,000 Gain $112,752 Less Mortgage Short Fall $44,577 =$68,175 For a College Education
Scenario 2. At 4.5% Appreciation = $445,115 and the end result would be $170,538 for your children's college education. But it gets better. We have not even taken into account mortgage amortization which would be substantial in 15 years. In fact it would be $53,000 additional available funds in either of the above cases. Once your children are in college you don't need to sell the home and pay capital gains tax (which may be different from today's long term gains of 15%), you can take the money out via a home equity loan or refinance. In fact at that time this thing will be spitting our money at your each month. Compare this to an investment in stocks or bonds or what ever you choose and see what works better for you. Consult your CPA about the tax consequences and consult your Realtors, Artur and Joanna to buy Investment real estate in Phoenix, Arizona. We Do! | 
