Longtime TOH viewer (20+ years), first time poster.

My husband and I live in a 1940 Dutch Colonial Revival. We are currently renting but are being given an option to buy. The location is fantastic (growing area in a top-rated school district), and the bones of the house are wonderful - nice built ins, fluted molding, beautiful oak floors, great trimwork near the roofline, an open floor plan, updated mechanicals, and original 6-over-6 wood windows.

Now for the downside - asbestos siding, muddy exterior colors, old wallpaper under some of the painted walls, UGLY aluminum storm windows, some isolated water damage in the upstairs bathroom subfloor, a missing proper stair railing, and a kitchen and two bathrooms in need of remodeling.

We've lived in the house for a little over a year, and have figured out most of its quirks by now. Although we would certainly get an inspection, we would feel comfortable buying this house. We would be doing some definite renovations (possibly even a garage/master suite addition), but want to stay true to the style of the house. We see a lot of early 1900's DC homes out there, but not a lot from the later part of the era this style was built in.

This would be my first time living through a major renovation, and I want to make sure we make the right decision. What to do with the house factors largely into all of that. Where would we want to consider starting with the renovation work, what types of things are typically worth keeping, and what should we consider replacing (aside from that nasty asbestos siding)?

Thanks in advance!