Buying in the pandemic

[Brett Danehey]

Hello all, 

I've been looking at a college town/city as a place to buy a triplex. I wanted to pick your collective knowledge on your thoughts? My first opinion is with some of the ivy league schools saying they are going to be online only that this will create a domino effect and other schools will follow. Leading to no one to rent to... Also, what are your thoughts, if that domino falls, do I get a better deal on the purchase waiting to the end of the year? 

I know this is speculative in terms of how this is all going to play out. Any opinions or thoughts are welcome. 

Thank you

[Moises R Cosme]

Brett, 

This is a pretty common question.  I cannot answer it directly because I do not know the town/college you are referencing, but I can give you a framework for how to figure it out on your own.

1. Amherst, MA:  75% of the town's economy depends on student matriculation; if matriculation is cut off for an entire semester, the town will be depressed economically and it will hit real estate hard.  The pandemic could be devastating to a town like Amherst over the long term, since students are starting to realize that distance learning is not worth $30K per year!!!

2. Fitchburg, MA:  maybe 10% of the town's economy depends on student matriculation; if matriculation is cut off for an entire semester, there will be an impact, but that impact will be minimal and there will be no impact on the demand for real estate.

I would NOT invest in Amherst right now; I would invest in Fitchburg.  I hope this helps!!!