In an economically depressed area you would want to get a higher cap rate.

I graduated college in 2008 and moved to California during what is now only compared to the great depression.

We currently have our smallest (and cheapest) rental up for rent and the type of folks who have shown interest in this one...while impressive in numbers...are generally depressing in lifestyle. 

It states we're in a very slow, depressed market.  

You are still facing competitors bidding the same property--to me that means we probably have to watch the economy move down some more before we are in a full on buyers market.Some experts were predicting a recession/depression to hit in January 2021, but it seems the governmental stimulus has moved it into a sort of slow burn (massive layoffs, higher taxes removing discretionary spending money from peoples pockets, etc...), with the San Francisco Bay area taking some hard hits.People are not yet feeling the true "Hard Times" that comes along with the bad times, such as 07 or the early 90's  with foreclosures (and Ramen Noddles) being the word of the day for most of the USA.Then good deals will abound.Just my 2 Cents.

Crime is a problem and is concentrated in a certain area but many of the neighborhoods are somewhat depressed.  

Some of the downtown real estate in the small towns is depressed. 

The area I'm looking in is somewhat economically depressed - on it's way up, but slowly, so lots of slow-pay tenants on top of it.If I was looking at buildings in a better neighborhood, and not looking to self-manage, it would be a different story...

If you are a flipper, or believe your SFR market is depressed, and has reason to believe it will rebound where you will have capital appreciation, then the cash flow matters less.  

The best I've been able to deduce is that the dip there has finally ended and the city (at least around Cleveland) is getting its act together to attract more business.My best guess is that, unless something else happens, the market there is SO depressed it can't go much of anywhere but up.