Investing Near Colleges and Universities?? Yes or No?

[Bernard B.]

What are some of the pros and cons of investing in small multi family (2-4 units) near colleges and universities? What were some of the unexpected challenges of managing rentals in a college town? Is there anything that would change your mind from investing in college towns??

[Joseph Cacciapaglia]

I got my start investing in a college town back in 2005. However, I intentionally got out of that business several years ago. There are real demographic headwinds coming up in about 5 years, which were already worrying me. There has also already been a push to online learning for several years, and the current pandemic has only accelerated that. There are many colleges that are discussing not coming back in the fall, and others that are limiting the number of in person classes. I've already heard of several smaller campuses closing for good. I think the next several years are going to be scary for some college towns.