Hi! I need some advice from folks that have done major remodeling. My husband and I have a contract on a 5700 sq. ft. wood/stucco 1904 house in a neighborhood we like. The area can be expensive but we would be paying about $300,000 less for this house than what it would be worth if it were in average/fair condition. However, it's not.

What we've found so far is that there is an oil tank buried under an addition on the back of the house, there is extensive termite damage that can visibly be seen up two floors, a bow window in the front of the house that appears to be cracking off (almost two inch sag with visible separation in the walls) and there are about 8 asbestos ceiling tiles in the basement....oh, and of course, chipping lead paint.

With that said, the house seems solid with little sagging other then the window. We are aware that this could be a long and expensive project but anything else in the neighborhood would be equally old and if in better condition, much more expensive. Also want to mention that we have a toddler so we would not be moving in until most of the work is complete.....and we would only take on small projects ourselves and hire professionals for everything else.

Basically, our only experience with construction is a small kitchen that we demoed, designed and remodeled ourselves in our current house. So, if anyone has experience remodeling large 100+ year old houses with issues, I want to ask...are we insane or could this be house awesomeness in two years? Should we move forward or run very, very far away?

From my standpoint, the issues the house has would be the impetus to really get into the walls and not only correct things but do other things like rewiring and insulating. In addition, the house meets a lot of our buying criteria and we've been looking for two years.

Thoughts or advice?