Owch yeh the heating and windows will definitely need to be done asap in your area. Kitchen and bathroom can wait if they're usable. Our kitchen and the other bathroom are still waiting, and the bathroom we redid would still probably be waiting if it hadn't tried to cave in on us.
If there is like here you're unlikely to move on in 5 years, we were supposed to have built up tonnes of equity by now and some developer was meant to have swooped in and paid a premium for the block of land (which is why zero non-essential work was done on the house, J was staunchly refusing to "overcapitalise" because we're zoned for units so the astute developer would have flattened the house and chucked 5-6 units on the land) and we were meant to have happily bought a nicer house on a hopefully similar sized block of land closer to the coast.
Cue manic laughter now as that so didn't work out at all.
On the bright side we're a fair way through our mortgage, and we kind of embedded into a lot of local community things so the kids and I don't really want to move now anyway.
Um moral of the story is if there is anything like here you're unlikely to be moving in 5 years, and as small will probably start getting more involved in activities and the like you may find that you really like wherever you are.
We aren't planning on moving, but we also don't want to live forever doing things and a bit at a time and then starting again fro the start 10 years later :D not that we would. However, What the plan is, is to be able to add enough value to it in the first phase of renovations so that we can get it reevaluated to get an extension for phase two, which would then complete it and add more value again.
The area is good, close to stuff including schools and shopping and there is a park across the road that Smallsteps can smoke at when she is a teen - though by then, she will need a loan to buy cigarettes anyway :)
We can live there comfortably for a long time I think.
Sounds like you got a plan, no wonder you're not scared ;D