Buying fixer upper in nice neighborhood as a first home? (Northern California)

My wife and I have been on the search for our first home and we came across a home that needs work but is in a great location. The house is listed at 400k and comps are anywhere around 465-500k. This was an investment rental and the owners just want to get rid of it as is. Home inspection (done by owners) showed that the house is in pretty good shape. Roof has another 15 years worth and is the first layer. Has hardwood floors in great condition (one little area near furnace closet has some water damage). Some of the foundation jacks need to be replaced due to rust. Looks like a couple jacks need to placed under a load bearing wall from our walk around. And the pool outside needs to be replastered and the pump needs to be fixed or possibly replaced. Other than that, the biggest thing is updating the house. It was built in 1970 and nothing has been updated since then other than new windows, furnace and ac unit about 3 years ago. The master bathroom, guest bathroom and kitchen need a facelift. If I can get this home for around 380k I think it's a worthy investment where there is plenty of room to appreciate in value.

As a first time home buyer starting out, would you be worried about a home like this and run away from it or is it a good opportunity of getting into a much nicer community at a lower price point with a home we can almost customize to our wishes and desires?

More real estate tips at Program Realty Wix site

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