To Go or Not To Go...House Hunting? (that is the question)

So, it's only been two weeks into our house hunting, and I'm already exhausted. It's either in the right area and absolutely horrendous or beautiful and in a not-so-nice neighborhood. Just an example : Jake and I went to look at this house on Alta, just a few blocks from Mike and Denise. It's just barely in our price range, and for the square footage, it's a steal...but...I can't even begin to amagine us living there. The only thing that I can say that's nice about it is that it's huge. We were going to put an offer on it, until we got home and realized that we were crazy. We were about to make an offer on a property that we could barely afford and that needed A LOT of work and no time (or energy, let alone money) to do it with.
So, we've decided to take a break until things calm down for us, financially that is, and take a whack at it when either Jake's possible job promotion goes through or one of my job applications comes back with a job offer. Until then, we'll probably be hanging out here with Mike and Denise, at least until the baby comes. We just don't know what else to do, so we are open for suggestions.