I agree with both of the other commenters that you definitely need to talk with a real estate professional, to determine the strength of your local market. My husband is retired Army (23 years from Vietnam to Desert Storm. After his retirement he became a general contracter, framing new construction homes, but we also used to buy fixers and fix them up in our spare (! time. Having gone thru this process several times, it's very important to know the value of your property and the status of your market area, and I must seriously caution you about beginning construction on a new house before you've sold at least one of your current properties. Let us know what you decide to do!! Good luck!!

Sounds like you're doing things in the wrong order. Not sure about the market where you are, but I would sell at least one of the homes first before putting a contract on a third home. As zipzap advised, please get a real estate professional's input.

Have you asked a real estate agent about this for advice? If this house is in a desirable location, someone might want to fix it up themselves. The problem with you fixing it is that it may not be in the style of the person who wants it. I would paint the front brick facade and back patio/deck white. The good thing about brick is that's it's low maintenance. The lawn looks like it's in excellent condition. Look at the positives in this house.