I would have gone for something more like this before considering a project like that. The $/sq ft is lower and there is no comparison between the houses.
Bigger, great view, quiet culdesac, new windows, new stucco, new roof, new heater, new garage door, new hardscape, new bamboo floors, new a/c, new fences, new landscaping, large bedrooms and Photovoltaic solar so you have ZERO electric bill.
