I see, so the higher payments after the reset are not affected by the current low interest rates. These are two separate issues?
If you can't do remodeling by yourself it it a very bad idea to buy a house which needs repairs . Too many things can and will go wrong and you might and will encounter some rip off artists contractors who'll make your life a living hell. Don't do it..
My wife just rebuilt a house ending a year ago, she had very good and not too pricey contractors working by the hour, it cost more to rebuild and remodel than it would have to bulldoze it and start over...