You don't want contractors walking on your floors before they have properly dried or mucking them up after they are done.As for the area, you have a mixed area there if it hasn't changed much.

When the offers dry up he'll sweat.

Moving air always helps basements dry out more.

Both property types can cashflow big time and both can suck your savings dry.  

I am looking for a moderate rehab for a property (windows, flooring, dry wall) and potentially adding a bathroom etc.

There is another post on here where a guy loaned money to his friend, then the deal fell through and it turns out his friend took his $24k and paid some back taxes with it, so the trust is gone, the money is probably gone, and he is left high and dry. 

We did see some standing water toward the back part of the backyard when we looked at this house, but we were hoping it was still just drying up since we had such a snowy winter.

The duplex I'm considering is right near downtown and some small businesses (dry cleaners, restaurant, gas station, grocery store, etc.).QUESTIONS:1.)

Jobs dried up and people were out of work.  

It's also pretty dry in there so I don't really have any concerns of mildew or anything like that.