Don't forget that you will have to refi and you want to do it sooner rather than later or the HML rate and fees will eat you alive.

Sounds like they want their cake, your cake and everyone else's cake and will eat it too. 

It has all the cool shops, nightclubs and amazing places to eat and drink.

The key is that the EAT owns the new property not you.  

If your tree is in good health, you have no knowledge that it was unhealthy, and it damages an adjacent property; then it is not your issue. 

Your QI forms an EAT and holds the new property while you improve it. 

That being said, 30 years is a long time, and a lot of people were stupid and did dumb things,  ghetto areas are a dog-eat-dog world, whole different culture... so I'd say... look at his history in the past 5-10 years.   

Reconfigure the powder room to open to the mudroom and somehow use that eat-in space?

You don't get realtors involved, that will just eat into your spread.2.

Being the best house in a Bad Neighborhood usually doesn't make it sell.I don't know the DFW Market - but 55 Days is long for most Texas markets. probably time to cut Bait (Price) eat the loss and move on!