On August 31, 2002, about 1020 Pacific daylight time, a Cessna 172N, N739ZV, collided with terrain during an off-airport landing in Lakeside, California, following a loss of engine power. Plus One Flyers, Inc., was operating the rental airplane as an instructional flight under the provisions of 14 CFR Part 91. The airplane sustained substantial damage, and the student pilot was not injured. The local flight originated from Montgomery Field (MYF), San Diego, California, about 1000. Visual meteorological conditions prevailed, and no flight plan had been filed. The pilot reported that the preflight and departure were uneventful. Upon reaching the practice area, he performed clearing turns and announced his intentions to complete various maneuvers. After completing a series of maneuvers, the pilot announced his intentions to perform a simulated engine failure. The pilot then simulated an engine failure at approximately 4,200 feet above ground level (agl) and performed his troubleshooting checklist, while looking for a place to land. At 500 feet agl, the pilot began his recovery: carburetor heat off; throttle full; and flaps up. The engine briefly gained "minimal" power and then completely lost power. The pilot assessed the situation, verifying the status of the airplane: carburetor heat off; throttle full; mixture rich; fuel on fullest tank; and primer in. When it was clear to the pilot that the engine would not regain power, he searched for a landing spot (the original landing spot was no longer an option). After touchdown, the airplane went over a bump. The pilot saw an approaching ravine and applied the brakes. As the airplane came to rest at the edge of the ravine, it turned approximately 180 degrees. During the landing roll, the nose gear, firewall, and outer right wing were damaged. The engine was examined under the surveillance of a Federal Aviation Administration (FAA) inspector at Spider's Aircraft Services in San Diego. No problems were noted during the examination.