Planning is always a big part of parenthood. But Bill and Kerry Palmer, Jack's parents, have developed a new approach -- one that other parents are adopting in increasing numbers.

The Palmers have decided to use real estate as a way to confront a common parental concern -- funding their children's future educational expenses.

"We looked at a lot of different options, but nothing seemed to be as stable as real estate," Kerry Palmer said.

Their plan was to rent the property after purchase at a rate that easily covers the mortgage expense. The mortgage will be completely paid up by the time Jack is ready for college.

At that point, the Palmers have several options -- sell the house and use the profits for college, borrow college funds using the property as collateral or continue to rent, using rental income for expenses. The property might even wind up as a good starter home for their son.

Using real property as a hedge against college expenses can be a smart move, Crouch said.

"Parents can avoid many of the increasing costs of having a child away from home, such as rising rent. Apartments in large cities such as Atlanta usually raise rents yearly. But a mortgage payment remains the same, and the property actually increases in value."

Finding the right property is the key to a successful plan. Some buyers prefer new homes, but foreclosed properties or fixer-uppers might be a bargain.

"The hardest part was finding a house below market value," Bill Palmer said.

The Palmers initially started searching on their own but quickly realized the Atlanta market was large and rather complex. They contacted Harriet Hinson, a real estate agent with Re/Max Greater Atlanta, who spent time with them looking for just the right property.

After focusing on particular areas, they eventually found a home in Smyrna. It fit their financial criteria perfectly and rented relatively quickly.

"Before buying, research the area and find out common rent rates, then factor that against the monthly payment amount," Bill Palmer advised.