The successful models withstood market corrections and recession/inflation. 

I keep my funds that I would be putting toward a real estate deal in the S&P 500 and gold markets to combat inflation but also to keep it on the safer side.

Over the long term San Diego properties have always (at least for 60 years) appreciated faster than inflation and faster than virtually all other markets.  

If there isn't much option because it's a small town, consider raising your rents to match inflation/student demand. 

@Mike Kalob inflation is at anywhere from 7% to +15% depending on who's numbers you want to believe.

With rising interest rates and inflation I'd agree it is better to stay at 10% IRR. 

If negative cashflow were $100 a month but you could bump rent $300 a month next year, this may be a good deal.Today's market has inflated sales prices and mortgage rates are hurting cashflow.

Rising rates and inflation will put pressure on new constructions costs, and it will lead to people who have a low interest fixed rate mortgage that would consider moving choosing not to.

A sale will trigger a tax event, and his cash will shrivel and die in a savings account earning less than 0.01% with inflation over 8%. 

Do you expect rent to continue to increase as inflation continues?