You guys seem very keen and sold on this house, regardless of any warning flags. Which is absolutely fine.
Are you good at DIY? Are you okay with having projects, repairs, dust, noise, etc in the house while you sort problems out? Are you okay with spending any budget you may have to "making your home a home" in the health and safety of the home and not decor? In other words, are you okay with spending money on replacing floorboards and wiring versus carpet and paint? Or would you rather have "good bones" and use any excess budget on making the house pretty?
At one point, you were really keen on buying the place you rent. What happened with that idea? As you know the house is in great condition and liveable.