In Rockford il, one of those severely depressed areas.

It actually passed the 3% rule which surprised me but it is in an economically depressed area.

@David Roberts I do expect to do well with the $1500 a month rent house for "very" specific reason.Cost $150k- While the house is worth 200k if all goes well I will close on it for 150k, as it is a depressed short sale. 10k Renovation Cost- Since it needs work I will be able to renovate it to be a low maintenance rental.

But at some point you need to decide when enough is a enough....or be smart enough to not even try making money in the really depressed areas!

So I've gone from depressive to manic to normal in the last few weeks.

You may see a dollar crash in the next month to 5 years, let alone a depression.

Amazingly, this market is turning all of us debt mongers who lived large on leverage into our grandfathers and great grandfathers who survived The Great Depression and then paid cash for everything.

Forced onto the American taxpayer, politicians claimed the Bailout was mandatory to, at minimum, delay the largest financial crisis since the Great Depression.

compare to Danbury and Waterbury  (I know Waterbury is depressed)  and Bristol Conn. 

But they both said it would be "unethical" to insure them for less than replacement value.I figure that there have to be other owners of rental properties in depressed areas who can give us some advice.