[chachee52]

This is a hard choice. I'm a type of person that it doesn't matter the house, but the location. I personally would kick myself letting go a property like you described. Any way you can sell of a few acres of your current land to cut the morgage down?
Also I had an issue in my family where my sister bought my grandfather's house (where my dad grew up) and treid to fix it up but failed (long story) you could tell that my dad was very upset in messing the house up but he never said anything.
Then I had the chance to buy my parent's house and same as you, I would have gotten it cheap and would have been able to add what I wanted, but I chose to pick a house that was next to a lake and a little more wooded area. I don't regret paying more and having a bigger morgage to live in a place that I love.