It would certainly keep someone out of a depressed area.It seems to have some challenges, though.  

And in the most likely case where the reserves aren’t needed than this can depress returns.They also tend to have a lot more upfront fees from the brokers that sell them, etc.

RE markets dont have to crash unless there is something wrong with the way the country is managing the economy or when a great depression hits and many homeowners are left unemployed and no longer able to pay the mortgage resulting in a huge influx of foreclosures and homes hitting the market.In BC where the prices have been skyrocketing in recent years, they've anticipated people buying properties beyond their means & taking on too much debt.

Some guy on CNBC yesterday (Tuesday) said we're in a depression (and said definitely not a recession). 

Do we still qualify to benefit from the accelerated depression?

There are many many depressed areas still trading at low numbers (5-25k) but you really don't want to invest there.  

Detroit has depressed property values. 

I know this amount seems low, but you have to leave cushion to absorb downside such as high vacancy, depressed rental rates, major repairs, tenant eviction.

As opposed to it being a depressed area per se (such as gangs or meth/heroin addiction being the main contributor).There also measures to take against the party population, beyond regular due diligence in tenant screening, such as using parents as guarantors or renting only to upperclassmen and post-grads.I think it's also important to note that ECU has medical and dental schools, a top rated graduate program, and the ECU Health Medical Center, including a main hospital, emergency department, and children's hospitals.

Now, another question - would you rather invest in an economically depressed market without growth, or would you rather place your bets in places that exhibit a multitude of economic / demographic / geographic trends which over time lead to growth?