I've had good results with running STRs in a depressed town with one big industry. 

If you go further inland, you run into economically depressed areas. 

Stumpage rates remain depressed in all eastern NC counties even after the Canadian tariffs.

Like the last depression, SFH is outperforming MF.

The old owner lived through the Great Depression era and there is no doubt in my mind that there are more hidden treasures in this house.

Do not get over leveraged so that you need to sell when the market is depressed and historically you will do great.I have also purchased an RE at near cash neutral. 

We were heavily leveraged but not over leveraged (very important because we did not need to sell when the market was later depressed). 

People increased occupancy by either moving in with family or friends so the demand went down but the banks were holding many foreclosed properties empty so the supply also diminished.There is no way of knowing if the next large recession/depression will behave similarly so the safe investor should be in a position to cover extended periods of reduce rents and potentially long periods of vacancy.We have been RE buy n hold investors since the mid- 1970s and have never experienced a significant rent decline in our market but in that time we have seen significant rent declines in other markets. 

not mine YET but ....my NEW 'lets flip a place partner' got a little depressed when a flip we bought was $10K more than his friends POS single story foreclosure buy sitting on wooden piers, (furnace, laundry & hw tank all in the very tiny kitchen) .

But the prices do jump a bit...That being said you might be getting a super good deal and that area is somewhat improving but it is still kind of depressed hence the crime map.