<p>My son will be starting his first year of college and we receive Financial Aid and Im thinking about buying a rental property later this year.
I was wondering how this would affect Financial Aid. </p>
<p>I figure that the equity (value - Loans) in the property would be the same as having that amount in the bank. Correct?</p>
<p>I.e. Property value of $100,000 and loans of $80,000 would show $20,000 net asset would that be the same as $20,000 in the bank?</p>
<p>What about the income? This is where I have my greatest concern. Assume there is a gross income of $20,000 with expenses (not depreciation) of $15,000. I would think that the $5,000 is what is added to your income. Anyone have any experience with this.