Shadowrun does it quite well. Albeit "The magic comes back" in that setting.
It could be interesting to have an Alt!history world where maybe the US was set up by dwarves fleeing an oppressive Elven monarchyin France, with the Orc-dominated Great Britain expanding ever outwards with it's pseudo industrialisation?
Shadowrun takes some liberties, and the US in the setting is very much divvied up into differing nations. Europe only gets a few mentions and England is London in the setting (Which seems to descend into very much an Aristocratically run country)
Look at Neal Shusterman's trilogy.
Sounds like Harry Potter and Chronicles Of Narnia. I think a lot of fantasy is unlike Lord Of The Rings.
It would help if you explained why you wanted to do such a thing. What is it about the idea of the real world and a world of fantasy colliding that interests you? Pick out those interesting bits and build around them.
Figuring out precisely what you want from your story will go a long way towards directing your creative efforts in the right places. Depending on what you want to do with your work, you might not have to do any complex Masquerade-building at all.
Professional Writer & Amateur Scholar
....Urban Fantasy is a thing.
I'm a (socialist) professional writer serializing a WWII alternate history webnovel.
Zzzzzzzzzz
Sounds like Literature/The Dresden Files, and Nightside and the Serrated Edge series as well.
...if you don’t love you’re dead, and if you do, they’ll kill you for it.
Such as a world that harbors things such as elves, and orcs, and werewolves, and entire countries devoted to them, but still countries like the US. Or would it be better to make them two simultaneously existing worlds?
This shall be my true, Start of Darkness