Buying next to a renovation project, am i mad?

[microserf]

we offered on a flat we like and were accepted. just realised next door was for sale, so had a nosy. it is a total dump bit of a fixer upper. definitely will need quite a lot of work, in particular one internal wall knocked out at the end and the kitchen and diner converted into one - the current rooms are a disaster. needs everything new - bathroom, replastering and painting, new floors (i can't even begin to describe how they look now).

we will be sharing a wall with this property.

am i insane to be buying? i have 2 kids under 2 who will be home all day, or should i just take a view and go ahead? husband thinks you can end up next a renovation anywhere, so just live with it. i tend to agree, but what are your opinions?

Why not buy it yourself?

We thought about it, but it's grossly overpriced (by about 100k) at the moment. Also, we are concerned about our ability to manage a project of this size with the two kids and me needing to go back to work.

Also, not sure we can convince our mortgage lender to lend us the cash we'd need for both the renovation and the purchase. that would make things quite tight.