A mixed economic neighborhood may or may not be such a bad thing.

Offer and Demand.. basic economics principles...

Here's my assessment on the market in Minneapolis, please let me know your thoughts on my thoughts: ( this would only apply to MN and I do track economical data at my day job)1.

That's assuming you have a solid economy, if you have an economic downtown it's hard for that demand to keep pushing appreciation.

I would not know when the recession will kick in, but I do know that there are key leading indicators to show that we are headed into an economic slowdown.

If you are, there economic value there, that value comes with leverage and (accordingly) a discount relative to "conventional" buyers.

If you can dispose of the brick economically (someplace that needs loose fill), then I would knock the house down as well.Even if you do not pull down the existing house, having the zoning approvals in-place to build a duplex will make your lot more attractive.  

We've tried several options, however looking for an economical solution!

All-cash, no inspection, etc. are worth *something* economically.

EconomicsAt this point, you can gather various sources of economic data to understand the trends in various markets.