If you can find an Airbnb in Jackson Ward/Scott's Addition/Manchester/the Fan/Museum District and are comfortable staying in one, I'd strongly recommend that just because you'll be much closer to things to do. If that's not an option, I'd say West Broad Village (delicious bagels nearby at Cupertino's).

Since you'll be here this weekend, 100% go to the Folk Festival Saturday or Sunday. You can easily spend the whole day there if you want, or head on to other attractions (the most walkable parts of the river are literally right next to the venue).