I think Crankin has made some very good points. Given what you and your partner like to do with your time, give serious thought to how much time you want to be eaten up by a remodel. But I'd also urge to you to consider how much either home will require--time and moneywise--in upkeep. I've lived in two homes, one of which was virtually maitenance free and another that requires a lot more. I miss the former and bemoan the latter. I love my current house, but it's a PITA. That weight of that becomes hard to bear at times. Plus, we will never see a dime of what we're putting into it unless we stay in the house for a long, long time.

How long do you expect to live in this house? I think you need to weigh that with the expense of building a workspace for your partner. You may not see a huge return on that investment.

Are you being forced into a decision right now for some reason? If neither home is perfect, why not just wait to see if anything else comes on the market that you like more? I don't know what the housing market is like in Hood River and its environs, so maybe that's not an attractive option either.....