[wanna be a young mother]

So we have slowly been fixing our house up over the years. We lived here for almost 6 years now. I love the fact that we live right next door to my grandparents. They are such a big help with everything.

So here is my problem. We have pretty much finished the whole inside of the house. All I have left is the kitchen (new tile, counters and cabinets). The outside needs new siding and windows. I know its older than 50 years. My guess is around 65 years old. We "thought" it was in great condition when we bought it. Well if you dont look under the house it is anyway . The foundation is not looking so good. It's going to cost us a LOT of money to fix it. I mean a lot, a really really lot !

So we have an empty lot between my grandparents houe and ours. They own the lot but would be willing to sell it to us for pretty much nothing. So here is the big problem. It would cost us the same amount of money to A) fix said foundation and other things or B) Take down our house and build a new one. If we pay for everything with out going through the banks. It would cost us about $70,000-$85,000. Our house right now with the lot is worth $110,000. The new house would sell (in a better market of course) for almost $220,000 but we wouldn't be selling it. C)We could also buy the empty lot between our houses and build there and try to sell our house but we like the extra lot.

I just dont know what to do! Do we invest the money in our current house that is only 2 bedrooms and 1 bath and falling apart or build a 4 bedroom 2 bath house in its place. The contractor said we are talking about 7-9 months here. So thats 7-9 months of us living with someone else. What do you think? What should I do???