Sleeper Home or dud?

[Ed O.]

I have found a home, that is the inverse of a castle in the ghetto. It's a little junker, surrounded by newer 250-300k homes. It's left over from then the neighborhood was developed. It's a good distance from anything similar to it in size or condition. It could probably be scooped up for 20-30k and would need some work, perhaps 30-40k to become marketable and new.
Has anyone ever turned a property like this? Are buyers averse to living in the little brother house amongst bigger homes or do they like the appeal of being in a strong neighborhood with bigger homes and little to no crime, good schools, etc?