Howdy Never had any say Panda.
That sucks about how your house is positioned.
It kind of sounds like you are stuck between a rock and a hard place. On one side you want to improve your dwelling and the other side it seems you are pushing sh*t uphill.
I feel the same about my house for different reasons. It is very old and could do with $50k to $70k spent on it with me doing most of the work to make it more than just a roof over my head.
I would be lucky to break even if I knocked it down and rebuilt, and if I spent the money to fix it I would come out in front slightly.
Sometimes it is better to look for something more suitable.