Crazy to buy house to add addition and remodel?
My wife and I seem to be finding ourselves in a bit of an odd situation. We may be unexpectedly selling our house for considerably more than its market value. We like our current house, it is an old home (about 110 years old), located in a prime real estate area near the center of the small city we live in, Now a developer wants to buy all the property on the block to clear it to build a store.
Which brings us to our next problem, if we sell our house we have to live somewhere, at the moment the house market here is reasonably priced, although with a very limited number of houses that meet our modest requirements (location, size, fenced yard, etc.). We have however found one that we both like (mid century modern built in 1961), there are however a couple of MAJOR issues, and some minor ones.
First the color scheme inside needs a healthy dose of paint, who paints a beadboard living room cathedral ceiling Olive Drab green? (cabinet work too)
Second the kitchen has a modern-ish remodel, but my wife hates the narrow slotted split level wrap around pass through counter. So some major cabinet work would be needed there, she also wants a gas stove, and the one now installed is electric.
Third and this is the big one, the master bedroom is tiny (10x11 ft), the attached master bath is not much better, to fix this would require adding on to the back of the house (this would simply be extending the existing roof line a few feet), probably making a 400 or so sq ft addition to the current 2100 sq ft house.
So my question is, is it insane to consider buying such a house just to go in and do such a major remodel?
If not, the options are build (at a price that much higher than buying existing, even existing that is just 3-4 years old), where do we live while that happens...
Any other thoughts or advice?