Its prone to collapse and I always figure it at about $4500 to $5500 to replace. 

Do to the water damage most of the second floor has fallen in to the first floor which has collapsed in to the basement. 

In Minnesota I have seen some town flourish and other collapse entirely based on jobs leaving or coming to the area.In my case it was a growing college town that was expanding, actually the hardest part about walking from the deal.  

And mid 6 figures was not uncommon.. not many 7 figure but 50 to 500k per logging show was pretty routine. then the Japanese economy collapsed and there went the big dollars.. still decent money in it..

With the addition of many moldy homes, and various water damage scenarios and the infamous collapse of a city.

That depends on what neighborhood it is in. 2 story Key West style house at $59k screams a good deal to me, unless it is in a horrible neighborhood and the termites only left enough standing so the place will not collapse. 

After the 2006 collapse of real estate market, lending guidelines have taken a 180 degree swing and those days are gone where you could get money without showing any income or even with no credit. 

If Las Vegas didn't collapse during the financial crisis of 2008-2009, then what makes you think it will collapse in the future? 

I live in one of the hardest hit areas,  we got just over 85" of snow...We are finally finishing digging out after two full days of plowing, shoveling and snowblowing, not to mention having to shovel off the roofs of our houses, garages etc as many are beginning to collapse due to weight and will get worse now that we are forecast for a thaw and rain which will more then double the snow loads.  

UCLA predicts an absolute collapse of those demographics starting 2020.