Let's say a sewer system for a single-family, low-income rental house in an economically depressed area of NY State, dies.

In 15 years we want enough passive income that my husbands retirement pension (if it exists) and our cash flow allows him to retire and be my handyman :)I personally do not think that low interest rates and "current" depressed house prices will last long term.

With a shortage of units available, it can be that the NOI will actually increase which again moves the CapRate upwards.Now if by downturn, you mean total economy recession or depression where jobs are scarce and wages are falling, then that's another matter.

It could be an area this depressed today, but you know future development will increase property values. 

I also have another family member that is bi-polar/has depression and have experienced the ups and downs, etc. that occur when meds are resisted or need to be adjusted.

There are 2 Amazon distribution centers coming to some fairly depressed areas near me, and I was researching how this might affect those towns’ economies and housing markets.

In a depression people still need housing but will sell off or trade the items in storage to generate basic necessities and eliminate the expense when that expense is the difference between eating or not.

Many high-income families are attracted to buying in this area, which depresses rent-to-price ratios.

The scenario I envision is some wide scale depression that impacts people’s ability to pay for expensive vacations.

Even looking at the "flat/depressed" condo prices and running numbers… seriously.