Suddenly there was the oil embargo, lines at gas stations, a depressed economy, and no buyers.

I would suggest staying away from depressed markets with good numbers "on paper".

I think this factor will depress prices a bit in these nicer parts of the city.

I know the CLE area is going through hard times, and would love to attempt to purchase some rental properties there while prices are (hopefully temporarily) depressed.

I'll let the accountant figure it  out, but it's almost too depressing to want to walk through it myself.   

It's not hard to see how depressed oil prices can impact these economies.

Is the area just working class with common working class issues like occasional drunk and disorderly and maybe domestic violence calls or is it a warzone with shootings, muggings, and burglaries especially of more expensive places near the neighborhood? 

You could chase wholesale deals for two years if your market has very little depressed housing inventory and very well known rehabbers, you'll likely fail if your market doesn't support the strategy.

Still, it was a gang-ridden, economically depressed neighborhood one typically aspired to one day move out of, when one had the means.It's always a surreal experience for me whenever I return to visit my old stomping grounds now.

So we buy depressed properties, fix them up which usually gets them to 20% value or so.