How Marc is putting his kids through college (tax-free) with real estate

Almost 2 years ago, Marc Kuhn and his wife made a bold financial move. Instead of relying on savings, student loans, or even a 529 plan to fund their kids’ college education, they bought an 8-unit rental property.

Now, that investment is paying for their children’s future - without touching their own income.

With three kids under 10, they knew they had to start planning early. Thanks to birthday gifts, contributions from grandparents, and a small savings cushion, they had some money set aside…

✅ They invested in real estate that produces cash flow, appreciates over time, and builds generational wealth.

The result? Their kids will graduate debt-free - and instead of an empty investment account, they’ll own an income-producing asset for life.

Here’s exactly how they did it.

The purchase breakdown

Marc and his wife found an amazing 8-plex in North Dakota - but there was one problem:

💰 List price: $450,000 (their budget was $240,000)

Time to get creative.

✅ Since Marc’s wife was a licensed broker, they increased the buyer’s commission on the deal. By structuring it this way, they boosted the purchase price, which in turn increased the bank’s loan amount - giving them more leverage.

📊 Final deal structure:

• New purchase price: $500,000

• Broker’s commission: $50,000 (came back to them)

• Down payment: $75,000

• Loan amount: $375,000

Marc also chipped in $15,000, which the kids will pay back using cash flow from the property in year 1.

Then? It’s 100% their property.

The financials (How this pays for college)

🏠 Annual rental income: $75,000
🏠 (Minus expenses): ($40,000)
🏠 (Minus mortgage): ($30,384) (at 6.5% over 25 years)
✅ Net cash flow: $4,616/year

📈 Plus appreciation over 10 years
📈 Plus a cash-out refi in 10 years (to buy more properties!)

The cash flow alone will cover tuition, and by the time their kids graduate, this property will be worth even more. Instead of draining an investment account, Marc’s kids will be sitting on a growing real estate portfolio.

529 plan vs. real estate: Which is better?

529 plans lock your money away until college.
Real estate pays you now AND in the future.

The takeaway

A 529 plan might fund your kids’ college… But a rental property can fund college, grows in value, and gives your kids an income-producing asset for life.

For Marc and his wife, this was one of the best financial decisions they’ve ever made for their family.

So… are you setting your kids up to pay tuition - or to own the school?Hit reply and tell me your thoughts.

And of course… Don’t forget to heck out Marc’s LinkedIn and Marc’s newsletter where he shares more about his journey as a real estate developer and investor.

Want to see more breakdowns like this?

Hit reply and let me know.

Be Well,