Chapter 3

Standing in the driveway, I said, “Nice house.”

“Yeah, and the best part is—no roommates.”

“How do you manage that, if you don’t mind my asking?” I said.

“These days, when some kids go off to college, their parents will buy a house for them. The kids find a couple of roommates, and the parents collect enough rent from the roommates to service the mortgage. When the kid graduates, the parents sell the house and take a capital gain if the property has appreciated.”

“Cool.”

“My dad did that for my older brother. In my case, he was so proud of my military service that he bought this house and allowed me to sign an Agreement for Deed. The way it works is he pays the mortgage, and I pay him. For now, I only have to pay the taxes and insurance. He gave me six years to get an MBA and find a job—after that, monthly payments kick in, and in twenty years the house is mine.”

“That’s a sweet deal.”

“The downside is that interest is accruing every month.”