The seller said no sellers credit and already declined low offers. 

I really don't think there will be a "housing crash" let alone in the Midwest market - the areas that are most likely to experience significant declines (if not crashes) are the areas that had huge runups in the last couple of years (Idaho, Arizona, Tennessee etc), Midwest prices haven't really come up that much in comparison and are thus less likely to have any significant fall ahead in my view

Personally we are migrating to Cedar Rapids more as I see Iowa City flatlining in rent rates and I anticipate even a bit of a decline in some pockets/types of rentals.

I actually have tried to help a few of my W-2 job consultants find housing for longterm projects they are working on and had no luck finding and investors that had open properties so I would think demand is still pretty high for the area regardless of the recent population decline.

It's a sketchy neighborhood in a city with a declining population over 2000 miles away from his primary residence.

Pros--hold it long enough and any dip in price or recession declines will eventually correct themselves. 

Only unsophisticated appraisers, banks and buyers will sign-off on that concept and that's a declining group as more people learn about how the business model really works.

Property values continue to decline in that area.

My understanding is that there is not much new jobs opportunities and there is no population growth or decline, so not much appreciation.

Negatives:- Property taxes-Reliance on one primary industry-Aging population above the average-Small decline in population I do see future potential in a city like Sault Ste.