To test my thinking, I created a simple model that projected total cash flow and equity over 5 years if I:Bought a good, cash-flowing MFH now and recession hit in 2019Waited and bought an MFH in 2019 during a recessionWaited and bought an MFH in 2020 during a recessionThe model assumes that a recession results in a 10-20% drop in housing prices which rebound over 1-2 years.

Then when things started to turn around, A/B market values were generally quicker to rebound, you were able to take advantage of increased rents, lower property values, cheaper money, etc.  

Friday’s disappointing jobs report surprised analysts, many of whom had expected job creation to rebound from a slump in May. “Any way you cut this data, it’s lousy,†Diane Swonk, a senior managing director and chief economist for Chicago-based Mesirow Financial, told CNBC Friday.

This worked well until the market started to rebound. 

Combine that multi-year price decline with the massive negative cash flows being taken and those "high demand" areas were losers for investors.I think the only lesson we can learn from the Zillow data is that buying in "high demand" areas after a market correction is a good strategy for profiting from the rebound.

Firstly, it is rebounding from '08.  

This driven by high stock market valuation and the rebound of the real estate market across the US.

The market has rebounded and that strategy has gone out the window.

This market is by no means California and we certainly aren't seeing rapid appreciation like our West Coast counterparts, but we have absolutely rebounded and are steadily increasing.

In hard times they cut that out to not at all or very infrequently to save money and eat at home or cheap fast food places.Right now a medium size restaurant could do well given the economy is rebounding in many parts of the country.The big franchises have the edge when the market cycles.