Jennifer - There are a lot of areas that are doing well today and will (hopefully) continue to do so. We're a more stable market with smaller swings than many others. The Twin Cities strong, diverse, economy good schools and high quality of life (even in the winter!) all contribute to this.
I'd suggest Edina, Southwest Mpls, and St. Louis Park first off. There are a number of different neighborhoods to consider (East or West Edina, Cornelia, Country Club, Highlands, Linden Hills, Fulton, Armatage, Lynnhurst, Browndale, Mourningside, etc...)
Some are going to be beyond your price range, others are not and it's on these borders where you'll stand to make some money in the short run. It's all about land value in your case. The right home, on the right block will see very strong appreciation through rising land values as more affluent homes are developed in the area. We're seeing lots of remodeling and tear downs as people flock into "nice" neighborhoods closer into the city, it's within these areas that development clusters pop up.
Let me know what kind of a home and neighborhood you're interested in and I'll try to give you a better idea of where to look.
Good Luck! and Welcome to MN!
Ben Kolkman - Realtor, Lakes Sotheby's International Realty