it seems like they would need to still keep an eye on their loan each month and also they may get kinda scared or upset if for some reason payment isn't in promptly when due.

They scared this first time home buyer which made them back out without any negotiations with us.

She is not in good health and needed to go to an assisted living facility. 

As long as it's a large University that's too-big-to-fail, I would say you're fine, it's the smaller colleges that I would be worried about regarding long-term financial health of the school. 

May everyone's 2021 be filled with abundance, prosperity, health, wealth, and plenty of flipping opportunities!

Therefore, I am a bit scared to buy out of state.  

I would have to say that the thought of doing a remote BRRRR, knowing how much “controlled chaos” there is with any project would scare me (if I were you).  

Since they are yours, once the moratoriums are lifted, remove them.You need to attempt to heal the relationship with the tenant the best you can and hope they pay. 

The con with this strategy is that you are converting income that is rental in nature to ordinary income(may be subject to SE taxes).The pro with this strategy is that it potentially opens you up to health insurance / retirement account deductions.

Many investors have seen it and passed up on the opportunity, which really scares me.