Which house can you see yourself living in for the long term? As someone else said, you can do a LOT with 4 acres Also being able to ride from your front door is very hard to put a price on.

Personally, I would choose the second house and just take my time doing the work that might need to be done since it is currently livable. Fixer-uppers do take a lot of time and effort, but in the long run you will have the best of both worlds. Of course it is easy for me to say that as I won't be the one spending the money or doing the work...