If your looking at a sellers market and your hold time is long, I would say be prepared for a depressed market.

I have to agree with him, despite how depressing it was at times. 

@Johnathan Massie Just because home prices in K.C. are depressed compared to Minneapolis, that doesn't necessarily mean rehab costs will follow that number.

The market is just too insane, and it gets depressing missing out on property after property. 

Prices on SFR, Multi -Family are in free fall.  1 business that might come to town, will not turn around this depressed town. 

[Invest locally]Pros: Close to investments, knowledge of markets, greater control, potentially depressed prices from market crash that can rebound strongly in 5-10 yearsCons: No cash flow, only benefit is building equity, lack of diversifying[Invest long-distance]Pros: Cash flow, diversifying possibilities, potentially depressed prices from market crashCons: Virtually no control, lack of knowledge of market, distance from investments, potential unmitigated nightmaresAfter going over the options, I'm not really sure which one I would choose.

This could help you find areas where there will be a greater likelihood of meaningful appreciation as opposed to just the cash-flow game from depressed purchase prices (a lot of Ogden).

I must admit, when I think of Detroit, I think of high crime and a depressed auto industry. 

But if this is in a depressed or sideways market, then you have to be extra careful as to what price you pay and how good your repair estimate is. 

Apparently I don't need to see any down sides though since @Anthony Dooley sees them in the most depressing manner possible.