Usually it's in an economically depressed area with distressed homes.

With oil & gas prices depressed, Oklahoma may start hemorrhaging jobs.

I cannot speak to the specifics of the above deal, but in general deals in Norwich might sound like "steals" but there is a reason you can find "12-caps" in Norwich, CT: 1) Norwich is a depressed market, and I believe it's declining in population. 2) It's easy to underwrite deals in Norwich as a 12-cap, because showing "nationwide averages" on the pro-forma for line items (e.g. vacancies/bad-debt, repairs, reserves, turnover costs, etc.) might allow you to achieve those numbers. 

This is due to the steel mill running at a reduced capacity and a slightly depressed economy.  

I personally buy in psychologically depressed areas, that I see value and other's don't.

Hey there BP,So I'm looking around at expanding my portfolio into some out of state rentals, mostly because my home market is really hot right now and pricing is through the roof, depressing cap rates to unacceptable levels for me.  

I think you will find opportunity in Maquoketa, it is fairly depressed in relation to neighboring towns like DeWitt or Dubuque, but that oftentimes means opportunity.

You may want to also pull out statistics in project cancellation/project shutdown due among other things, State induced strict compliance to the letter, contractor's compliance and liability costs (biggest reason why significant California contractors are put out of business aside from tight competition), it's just next to impossible to earn contractor wages based on economic conditions (that being current prevailing economic depressed consumer wages cannot support re-construction costs or that wages to property modification ratios is not sustainable in long term basis), indicators, and indices (unit labor ratios, material integrity and application ratios, Local, State, and Federal (labor, occupational hazard, environmental) compliance costs, and certain and uncertain risk factors.

The Great Depression : a diary by Benjamin Roth  It's a perspective on things from a different economic cycle 

This is a guy who is down on his luck in a depressed market.