I feel like I need to confess something.

[973beachbum]

No I am not really an 18 yr old dude living in his mothers basement.

I just put my DD's fall tuition on my credit cards.

I thought long and hard before I did it and it was the best decision I could make out of a number of not so good choices. 

I had saved up to pay for it plus half of the springs which comes due in Dec.  Well then DD didn't get on campus housing which made us have to look for off campus housing.  Our choices there were one bed apartments for $800ish a month plus utilities and requiring first and last plus security deposit.  Then actually paying the rent which DD couldn't do except in the summer even with a room mate. 

So our bright idea was to buy a house since there actually were a bunch that were relatively cheap.  That used up a fair amount of the savings and then came the fixing it up part.    So we have sunk a huge chunk of what was left of our saving into fixing it up and what happens DH's truck died naturally.  So now we need to buy a new car for him.  And I really don't want to finance a new one. 

So I looked at parent plus loans and saw they have a 4.275% origination fee.  I did have a credit card with 0% rate on it for most of a year that I could put it on and I am pretty sure I can pay it off way before then.   But I still hate that I did it.

[Deleted]

This too shall pass. I know you've got it.

[movingforward]

Will the house be rented out to roommates? 

[Bonny]

Aww don't beat yourself up too bad. You're in fine shape just not being able to "optimize" things right now. Be proud (and grateful) that you have options whereby a lot people don't.

That said, buying a house is a really big step. Your DD will finish school when? What's the longer term plan for the house? Will it work for a rental for a while?

FWIW my father's girlfriend's daughter bought a house for her son who was going to San Francisco State. Looks like she timed the market perfectly. I'll bet she's made close to 50% on the purchase.

ETA: with money so cheap I would finance the truck. Can't you get a 1% loan? That's a lot cheaper than CC interest over the same period of time.

[justme]

I knew several kids in college whose parents did that. Then they rented the other rooms out which often covered the mortgage without the owners paying anything for their kid.

If there's roommates chipping into the cost it's often a very good idea if you have the ability to do it.

[Opti]

I hope it works out Beach. (and being an 18 yr. old in the basement is too normal. Something like 27, 35 or even 45 would have played better. )

[973beachbum]

We are not renting yet because it looks like a war zone with the remodel still in the middle.  Even after I don't want the responsibility of college kids paying me rent.  I have visions of a drunk kid falling down the stairs.

It was a super cheap price for the neighborhood although we have spent almost as much bringing it into something close to resembling a normal modern house.  Even with that the identical house half a block down the road just sold for twice that amount with total remodel when done.  So I know I can sell it and make money I just don't like the stress of seeing my savings go poof.

DD is going to be a junior next year.  She has even said it would be a nice home to live in once it is fixed up and the area is pretty cheap.  We have purchased most of the materials but haven't even gotten half way through the remodel.  And it is an older inner city home in PA.  so although there it is listed as a 3 bedroom I couldn't imagine renting to someone where the bedroom is literally a pass through for the one and only bathroom.  Until that gets fixed DD is using the living room as the bedroom.  The real bedroom is getting worked on as it has an old chimney that needs to come down to put in normal stairs, which need to be done to put in a working kitchen. 

All I can say is it seemed like a good idea at the time.

[973beachbum]

Weirdly enough it was rented right before we bought it and to a section 8 renter.  Around here no way would some of the things they did fly for section 8.  So I know it could be a solid rental if we wanted it to.  When we are done it will be a 3 bedroom.  And it could easily rent for $800 to $1000 a month.  For some reason houses don't rent for near as much there. 

As far as they new car we tend not to buy new even with 0% interest.  We are more the buy an older used one and drive it into the ground people.

That is how DH's 20 yr old, 480k mile truck got pushed until it literally fell into pieces in the driveway this weekend.

[MJ2.0]

[busymom]

That's right! Drive 'em until they die. (That's what WE do...)

Sometimes, when you've got a kid in college, there are no good options, so you just do the best you can. 

[Ombud]

Aug 3, 2016 9:37:09 GMT -5 973beachbum said:

So I looked at parent plus loans and saw they have a 4.275% origination fee. 

I wish more people would read that fine print!! That was a very YM thing to do. So instead of having debt after 2 yrs, you'll have a solid investment

[movingforward]

I agree.  Just think of it as an investment, though I do understand the mental strain of seeing your savings diminished. 

[Tennesseer]

"I feel like I need to confess something"



"Holy Crap! Did she just confess to me she put her DD's fall tuition on her credit cards?"

[Lizard Queen]

The 2 colleges I've attended recently charged a fee to use a CC.  For one, the CC rewards were greater, so I paid that way.  For the other, it wasn't, so I paid cash.

[debthaven]

It sounds like you made a good investment, although I have to admit I would not want the aggro (been there, done that, still there and fed up lol)

A few thoughts:
- I would get insurance and encourage DD to find housemates (once the house is finished obviously)
- Renting out the other two bedrooms (or even one) would help pay the mortgage / expenses.
- Houses are often "passed on" between friends. So if you want to keep this house long(er) term, having other tenants might be a good way to (sort of) ensure that the students who live in it after your DD finishes are (somewhat) responsible.
- I don't know if your DD is planning to go to grad school or not, but if she is, would you be OK with her going anywhere? Or do you feel that she would have to go locally and continue to live in the house?
- On the other hand, you might just want to fix it up, keep it for 2 years until your DD finishes, then flip it. In which case it's understandable you might not want tenants. But is your DD happy to live alone in a 3BR house for 2 years? That strikes me as rather a lonely living situation for a typically-aged college student.

In any case, congrats, it sounds like a solid investment, given what you say about the other house.

[Sam_2.0]

Aug 3, 2016 10:01:05 GMT -5 973beachbum said:

We are not renting yet because it looks like a war zone with the remodel still in the middle.  Even after I don't want the responsibility of college kids paying me rent.  I have visions of a drunk kid falling down the stairs.

It was a super cheap price for the neighborhood although we have spent almost as much bringing it into something close to resembling a normal modern house.  Even with that the identical house half a block down the road just sold for twice that amount with total remodel when done.  So I know I can sell it and make money I just don't like the stress of seeing my savings go poof.

DD is going to be a junior next year.  She has even said it would be a nice home to live in once it is fixed up and the area is pretty cheap.  We have purchased most of the materials but haven't even gotten half way through the remodel.  And it is an older inner city home in PA.  so although there it is listed as a 3 bedroom I couldn't imagine renting to someone where the bedroom is literally a pass through for the one and only bathroom.  Until that gets fixed DD is using the living room as the bedroom.  The real bedroom is getting worked on as it has an old chimney that needs to come down to put in normal stairs, which need to be done to put in a working kitchen. 

All I can say is it seemed like a good idea at the time.

You can get a lease for renting out a room. I did it before I met DH when I had roommates living in the house I owned. We never came upon this scenario, thankfully, but I have a feeling it would go under normal homeowners/renters insurance. You could go a step further an use a property management company and have your DD also be a tenant, with you and DH footing her rent bill if you wanted.

[giramomma]

Aug 3, 2016 10:01:05 GMT -5 973beachbum said:

We are not renting yet because it looks like a war zone with the remodel still in the middle.  Even after I don't want the responsibility of college kids paying me rent.  I have visions of a drunk kid falling down the stairs.

Honestly, I only got  that drunk twice..I was too drunk to go up steps, let alone down them. The living room couch was my friend.

[zibazinski]

DD has put her tuition on her CC every month and then pays it off. For the rewards. They don't charge her a fee.

[Deleted]

I was going to put DS's high school tuition on the card last week, but they charged a 3% fee to do so otherwise I totally would have just to get the rewards.

[Ombud]

I'm putting 500 of GS1's costs per term on my Mastercard too. Easier than writing a check or paying his cell phone. He thinks he's covering it all but isn't on work schedule until 8/25/16

[Happy prose]

Well congrats on the new home! I don't think it was a bad move at all. I also wanted to out DDs tuition on a cc, but they charged a 3% fee, so not worth it for me. Good luck!

[toomuchreality]

  I was wondering when you were going to finally confess! 

It sounds like you made the best decision, given your options.

I hope you find a great 'new' truck!

[Shooby]

Aug 3, 2016 10:01:05 GMT -5 973beachbum said:

We are not renting yet because it looks like a war zone with the remodel still in the middle.  Even after I don't want the responsibility of college kids paying me rent.  I have visions of a drunk kid falling down the stairs.

It was a super cheap price for the neighborhood although we have spent almost as much bringing it into something close to resembling a normal modern house.  Even with that the identical house half a block down the road just sold for twice that amount with total remodel when done.  So I know I can sell it and make money I just don't like the stress of seeing my savings go poof.

DD is going to be a junior next year.  She has even said it would be a nice home to live in once it is fixed up and the area is pretty cheap.  We have purchased most of the materials but haven't even gotten half way through the remodel.  And it is an older inner city home in PA.  so although there it is listed as a 3 bedroom I couldn't imagine renting to someone where the bedroom is literally a pass through for the one and only bathroom.  Until that gets fixed DD is using the living room as the bedroom.  The real bedroom is getting worked on as it has an old chimney that needs to come down to put in normal stairs, which need to be done to put in a working kitchen. 

All I can say is it seemed like a good idea at the time.

I am planning to have that saying put on my tombstone!  It is kind of my motto!  lol

[skubikky]

Once the remodel is finished and DD is settled, maybe she can find a roommate?
A friend or someone she knows who could share the "rent"?

[973beachbum]

The college does charge a fee to use a credit card.  It is 2.5%.  So if I hadn't known I need to save cash to buy a new truck I would have just paid it by check.  But I really wanted to keep that cash around until we have the new car and the house is done.  I know we have some investments we could sell but that is literally a last resort. 

I used my card that gives 2% and 1.5% back so the fee wasn't much.  And IMM considering the choice was between the card with the 2.5% fee and a plus loan with a 4.275% fee even without the rewards it seemed like a better deal.

I am kind of a fan of rewards cards with sign on bonuses.  So I will get a bonus for the new card that I used and zero percent interest for the next year.  So I won't have to pay interest to while I pay it back.

As far as my plan to pay it back...I was going to continue working 80 hours a week.

[toomuchreality]

Aug 4, 2016 6:12:54 GMT -5 973beachbum said:

The college does charge a fee to use a credit card.  It is 2.5%.  So if I hadn't known I need to save cash to buy a new truck I would have just paid it by check.  But I really wanted to keep that cash around until we have the new car and the house is done.  I know we have some investments we could sell but that is literally a last resort. 

I used my card that gives 2% and 1.5% back so the fee wasn't much.  And IMM considering the choice was between the card with the 2.5% fee and a plus loan with a 4.275% fee even without the rewards it seemed like a better deal.

I am kind of a fan of rewards cards with sign on bonuses.  So I will get a bonus for the new card that I used and zero percent interest for the next year.  So I won't have to pay interest to while I pay it back.

As far as my plan to pay it back...I was going to continue working 80 hours a week.

Just a couple of extra hours a week, huh?  You're going to kill yourself.
Have you written your "note" yet?