The only answer I have found to this problem is to look at in state public universities, less selective private colleges in rural areas, low cost out of state colleges, or southern/midwestern colleges with great merit scholarships if one’s child has excellent grades and test scores.
We are lower middle income but have the majority of our retirement savings in regular accounts vs legally designated retirement accounts due to having lived overseas in our younger years. I explained this to college financial aid officers over the years and didn’t get much sympathy. The most it ever got us was a $2,000 grant.
More states are offering special financial aid programs for families with adjusted gross income under $65K. Those are the best opportunities for people with assets in unprotected accounts.
One option would be to sell the rental, put the money into an annuity, and only apply to fafsa-only schools. But that might not be something that’s good for your family in the long run.
It’s a tough situation but I remember @Mom2aphysicsgeek ‘s very wise answer to this type of situation. It better to have money and have this problem than not to have money at all.