Yes, we have.
We sold our last house partly in order to downsize, but mostly to get away from what we considered at the time to be a bad location*, but which with the benefit of hindsight wasn't bad at all.
Swapping areas completely we moved from England to Wales and from a village on the edge of a city (*the bad location) to a rural location with a couple of near(ish) neighbours. It was very difficult to find somewhere that ticked all our boxes and we ended up viewing a repossessed cottage that was at least detached and - externally - had some character features.
We've bought several 'project' houses previously and I'm normally one to see past the crap and have the vision to acknowledge the potential in a house, but in this instance I hated it on first sight, whereas my DH thought it was perfect. Unfortunately there was nothing else remotely suitable available and we'd already exchanged contracts on the sale of our house. We were buying with cash, had loads of bulky furniture etc plus two dogs and didn't want to go into rented which would not only have been problematic with our stuff, but would have eaten into our capital. So I was persuaded to buy it.
As soon as we got the keys I regretted the decision to buy and suggested we put it into auction to get shot immediately, but realised that was a rash decision. I cried a lot during the first few months and 'grieved' for the bigger, better house we'd sold.
Not only did everything need doing as anything the previous owners had done was done badly/cheaply (not a problem as we had a relatively healthy renovation budget, having bought a cheaper house, plus fortunately we're seasoned DIYers who can do lots of work ourselves), but the layout of the house was awful. We soon established that to make it work for us we'd have to reconfigure virtually the entire space. This made me hate it even more, because our last house had been perfect, layout-wise.
Five years on and we've changed everything - from swapping the kitchen and living room, removing walls, rebuilding the old extension, improving the upstairs layout and landscaping (part of) the 0.5 acre garden. There's just a few things left to do but the previous owners wouldn't recognise the place!
I still don't love it and miss my old house, but I admit it's lovely now. Despite all the improvements though, we're going to sell it once we've finished, as it still doesn't feel like home (I tolerate it, but that's all really) and move closer to family. I actually can't wait.