Sorry, but this is another "what would you do". I know I do this a lot.
Currently, DH and I live with MIL. We have been in her house for around a year or so at this point. (I already know that the first word of advice is to get out immediately, but financially, it's a decision we had to live with for a bit). We are now at a point where we are looking to rent or buy. Two options are now being presented. It is important to note that DH is an only child, MIL has pretty much no family and relies on DH for everything.
Option 1, There is a very small starter home on the next block. It's cute, and in a good location. The price recently reduced and it seems like something we could purchase, and then do work on, eventually upgrading to a bigger house and either selling it or renting it out (depending on our financial situation at that time).
Option 2, DH wants to speak to an architect about what can be done with the home we are living in now that belongs to MIL. It is a good neighborhood, and on the pond. She has lived there for like 30 years. The house certainly needs updating and reorganization. She wants to give us the house to essentially turn into a Mother/Daughter (or I guess in this case, a mother/son) where she would have a small apartment on the side of the house, and the main house would be ours. The amount that we would pay for a down payment and whatnot could go into the reno. It would end up being a home equity loan instead of a mortgage. I am hesitant because she is a very difficult woman to deal with, and I was excited about having our own space. Then I started to feel bratty for thinking that when DH mentioned that at some point he'll have to take care of her and the property anyway, as an only child.
I'm just looking for some outside perspective, please.