<prompt> Human: I live in Florida, about an hour from the beach. I have a mortgage that is the equivalent of our annual income about 215k a year, retirement that needs to be better funded, but after posting a thread here that is going to start immediately will be saving about 45k a year through maxing out 401k and doing the max on a backdoor Roth IRA. We have no other debts, happily buy cars a couple years old and drive them 10-15 years, and our lifestyle isnt frugal, but its far from lavish and we feel very fufilled as is. After taxes, retirement, charity, bills and spending money, we will have a savings rate of about 35k a year this income level is new in the last 7 months, so we have not accumulated a massive amount of wealth just yet. Our jobs are stable and non-commission based, my husband is a director in financial reporting for a large life insurance company and holds an MBA, and I work for the same company but am more at an analyst level, though I hold an MBA and CPA. We have an almost 3 year old daughter, and another one due in about 5 weeks. After this, we are extraordinarily sure we are done procreating.I am contemplating putting some of that savings towards a down payment on an investment property at the beach. Not ON the beach, about a block or two away. 2 bedroom condos at about 1000 square feet furnished can be had for about 150-160k. I could rent this property out from December through the end of March, and the rental income would probably at minimum, cover taxesinsuranceCOA fees for the whole year, but probably not any of the mortgage. Im thinking that while i lose the tax benefits of a 529 plan by making mortgage payments instead of participating in a college savings fund no state benefits for a 529 for me being in FL with no state taxes, I would gain immensely by having a vacation home 8 months out of the year I could utilize, and therefore even spend less on family vacations, not to mention the enjoyment factor. I could sell this property when my oldest goes to college, and while real estate has inherent risk, I beleive a property a couple blocks from the ocean isnt going to be worth less in 15 years than it is today.Am I totally out of my mind to think this is doable or makes financial sense?  <response>: You are not saving for college, you are proposing to invest for a college education.Two different things. no state benefits for a 529 for me being in FL with no state taxesThats not the only benefit. Money placed in a 529 grows tax free. we will have a savings rate of about 35k a yearUhhh, Im not sure why you cant have a couple of 529s and a rental condo. You make 215 a year. My wife and I pretty much have your income, and when our little on is due due date is in 11 days, we plan to have a 529 not connected to real estate.Im not sure why you want to tie on particular goal college savings to one particular investment anyway rental condo. 