In 1966, that was A LOT of money -- you could buy mansions on the water on the North Shore for less than that, and whole farms in New England for a small fraction of that total. In 1969, I bought a 30 acre farm and 1830 house in Washington County, NY, just over the Vermont border for $7500. But seeing that living room all clean and freshly painted is a real pleasure.

Can you keep the guest room wallpaper on the ceiling. It's pretty fabulous.

That's worth about $320,000 in 2012 dollars - about the cost of a 2 bedroom apartment in Queens now! Good investment. :)

EYL, I was going to say the same thing about the wallpaper that's already gone! Absolutely loved it (feel the same about the guest room wallpaper, except that it's on the ceiling)!
The house is gorgeous. Good luck with the facelift!

I'm glad you're doing a freshen-up instead of a full renovation. I hope you keep many of the beautiful elements of the house, like the bead board in your old bathroom and in the master bathroom.

What an amazing house and a great story! I can't wait to see more pictures.

+1 for keeping the wallpaper on the ceiling in the guest bedroom!

Keep it simple! Don't go hog-wild on this home. It has fabulous "bones" and may need a sprucing up here or there with paint and fixing the damage on the floors but nothing more. I also like the crazy green wallpaper. Leave it on the walls and take it off the ceiling-or as the one poster said leave it on the ceiling (and remove from walls).
The master bath is fabulous just the way it is. I wish I had the money because that's a house I'd love to have.

That house is incredible! You proabably dont realize because you grew up in it, but what a dream...!!!

Love this! What brilliant investors your parents are ;) Congrats and good luck with the renovation.

That home makes me wish I was on the market for a home in East Hampton! Seriously beautiful, don't change too much!

The progress is awesome so far! I am really excited to see this transpire!

Oh please don't get rid of it's delightful quirks! Like the bathroom sink and beadboard, or the green wallpaper!!

(Our first house, a 1 and 1/2 story little house on the prairie) cost us $26,000 in 1991. It had holes in the walls and was covered in insulbrick, but it was sweet when we were finished with it.)

I also kind of love that crazy green-and-white guest room wallpaper! Consider keeping it!
I think it reminds me of the New Jersey beach house I grew up vacationing in. :)

It looks lovely with the fresh paint but I would have kept the wallpaper in the living, dining, and guest rooms. AT needs a wallpaper appreciation post!

Quirks are all well and good if you plan to live with them yourself, but if the point is to rent or sell, I'd only keep the quirks that don't impede normal living. (So I would change out that bathroom, personally.)

But I have to say -- seven bedrooms constitutes a bed and breakfast or small hotel! You have income potential! ;^)

What fun to be going on this ride with you. Thank you so much for sharing and please keep doing so often (along with your reasoning for each decisions).

What a beautiful home. Looking forward to the new pics. You've got a great house to work with. Good luck!

+1 on keeping (at least some of) the green wallpaper. It looks great!

Wow, what a fantastic home. The original furnishings are pretty nice but I love the white paint to freshen it up. I do agree that the green and white wallpaper in the guest room is worth keeping. I think wallpaper on the ceiling is delightful though it does make more sense for a special guest room as it might get tiresome if it was your everyday bedroom. It also looks like the baths are classic and still in good condition. What a lucky duck you were to grow up here.

So wait, just so we understand -- this has been used as a summer-only cottage all these years and still will be? Or was it one-season when they bought it in 1966 and they converted it to year-round?
It's pretty amazing either way.

I thought the Before was the After! Shows how style is cyclical...

Another vote for keeping that green wallpaper!
What an amazing house.....

I will buy it from you for $180k. That's a 400% return on the initial investment---you'd be crazy to not accept my offer! :P

Wow - that place has some great bones! Beautiful proportions and light.

I'll be interested to hear what improvements you make to the non-sexy stuff. You know: insulation, wiring, plumbing, etc. It takes a bit more than paint to keep tenants happy... especially if the tenants stay beyond summer!

what is the definition of a cottage? this house is pretty big.
I actually love the old bathroom.
I love the house , please keep us updated.

Beautiful, before and after. As someone who can only dream of living near any water (whether in the summer, or full time) I am envious beyond belief. If it was me I'd move in in a heart beat and call it home permanently. Love what you are doing and looking forward to sharing the journey with you. The new residents don't know how lucky they are.

We built a large shingle style home here in Virginia and it would be dubbed a cottage too! LOL Back in the day, when the wealthy (or at least very well off) went to the Hamptons for the summer they brought the family and servants and had frequent houseguests...therefore, a big house called a 'cottage'. It's just lovely and your renters will love it! I vote to keep that green and white paper but agree about having to make the bathroom more usable. Love the other changes too! it will be gorgeous when you're finished!

Amazing, romantic place with so much rich history! By all means, keep the green and white wall paper and never lose sight of the beautiful old details. What a treasure. Congratulations to the new family. May they have many happy times there.

What a beautiful home and grounds. Please keep that green wallpaper on the ceiling, it's fabulous as is that wonderful sink. I hope you can keep it or restore it. Good luck to the new family!

beautiful house...is Ina Garten your neighbor? =)

Whoo, renovation series! Can't wait.

I vote for keeping some of the green wallpaper, and the pink dining room wallpaper. Would I put either of those in my home? No. Would it be awesome to rent a place with both of them? Hell yes.

Gorgeous home. I agree with everyone else about keeping the green and white wallpaper on the ceiling. I love wallpaper and graphics, but I would never keep 40+ year old wallpaper that showed its age, so by all means, tear it down if it's gross.

Amazing house. It gives me joy that you never entertained the idea of tearing it down and bulding a McMansion. What a place to grow up! I imagine some endless games of hide-and-seek were played there.

What an amazing home! Wow! Can't wait to follow the whole renovation. I LOVE all the old elements of the home. WOW WOW WOW!

Yet another vote for keeping that green wallpaper if it's in fine shape.

Thanks for sharing this project -- it's fascinating to see the house and your changes.

An enviable project to have, for sure! As someone mentioned above, I'd like to know if the house has been winterized, replumbed, rewired, etc. over the intervening years. And if, based on those facts, you plan to rent this out only in the summer or as a year-round residence. That would affect some of your design decisions, wouldn't it?

And it seems like I'm in the minority here, but I'd make all the wallpaper go away, very far away. Love the whites in the lvrm so far.

In any case, lovely house and grounds! Good luck!

Beautiful! I'm glad you guys are renting it out. It would be really hard to sell (emotionally) and it doesn't seem like homes stay in families anymore <sigh>. I'm trying so hard to get my sis on board with buying my grandmother's house (when she passes, she's alive an kickin hard still!) because I know that my dad and aunt will probably sell it as soon as they can...not for selfish reasons, I just don't think either one of them wants to deal with the hassle. I can't imagine though never being able to go back. Roots are so important the older we get.

I love this already! Can't wait to see more...

That 'cottage' is unreal. So beautiful and what a wonderful home to have in your family. Another vote for keeping that green wallpaper - very Hamptons chic!

"...my brother and I" should be "my brother and me."

Love that green wallpaper, but keep in mind that they are preparing the house for sale, so they would probably be wise to remove it.

Gorgeous house! I loved it just as it was - wallpaper and all.

Not to be ghoulish....but did you and your parents talk to a financial advisor about this? In general it's far better for parents to bequeath property to their children at death rather than transfer it during their lifetimes. You might be looking at a hefty capital-gains tax.

Now I'll put my pencil and calculator aside and say that this beautiful home has character and "bones." Thanks for respecting them!

Ama.....ZING! So jealous. Beautiful spaces. Absolutely interesting.

Oh yeah, please call me if you'd rather it were a bed and breakfast. I'll come run it. :)

Oh what a beautiful house! I love the clean white painting you've done so far. Look forward to seeing more!

I have to wonder if some of you commentators have ever seen wallpaper after 50 years. It usually looks terrible and is not salvageable. East Hampton has similar weather has Cape Cod and our Cape house had wallpaper put up in the sixties (and it still has wood paneling from the forties). It was gross. The humidity and dampness of the shore had caused it to dimple and peel, and sometimes grow mold. It also tends to fade in sunlit rooms, leaving strange 'dark shadows' where furniture used to be. If there was ever a smoker in that house then it probably also smelled.

I'm not saying you couldn't salvage if it was in good shape, but you can't tell it's condition from the photos. Also, maybe they just don't like wallpaper?

Personally I think the house has gorgeous bones and the white paint does a lot to brighten, enlarge, and modernize the home.

Beautiful. Benjamin Moore is the only paint I'll use. Their colours have a depth that other brands don't seem to.

I used Decorator's White in my apartment (which would fit in the living room with room to spare), it has a blue to it that works well with the light on my block.

I look forward to following this project, such a great space to work with.

@THORNDALE - I don't get it....the owners didn't ask for pity. $46,000 was a lot back in the 60s, but you're assuming the family is extremely wealthy (and already have a summer home) because they managed to keep it in the family for more than 40 years? Maybe they paid off the mortgage 25 years ago and just..you know...own it. It IS daunting and it IS overwhelming for the new owners, and it has nothing to do with being "gifted" a house - it's an emotional and financial investment. Of course they're not asking for pity, but I don't see why you have to make assumptions about them.

There is nothing quite like old, stained, bubbling, smelly wall paper, I agree it must go; but then I'm a west coast gal, we don't go so much for wall paper here. I hope you can salvage or restore the old lighting, too. I absolutely hate modern, awkward light fixtures - along with plastic chairs. I just had a lamp from the early 40's rewired. Wonderful lighting that is adjustable and in a sturdy attractive base :-) The furniture in that house (mostly) makes me drool. Carry on!

Good God, it's stunning. Can't wait to see more!

(Oh, and can we do it without the thinly-disguised jealousy from some posters, please?)

What lucky ducks you are to have lived in such a lovely home, and now to own it. Count me as among those who'd like you to keep the green wallpaper in the guest room. I'd liek to suggest that you do a post specifically on that room. If you keep the paper, tell us how you refreshed it, and if you had to get rid of it p;ease show us why.

And @Charlie26, what;s wrong with a little jealousy? I'll admit to mine. It's not like we're going to stalk Maxwell!

@kushkush - fair point. Actually, I'm pretty jealous myself! ;)

Sorry, I worded that badly - I meant the snarky speculations about how much money the owners have, which always tend to come up with posts like these.

Great house. I love the green wallpaper. This is a huge task I would love to take on but only if I didn't work for a living and didn't have kids.

The house is fabulous! I am in the process of taking old wallpaper down in my kitchen, and having a hard time getting it off. Any tips on how to remove old wallpaper, quickly and efficiently (products, techiniques)? Can't wait to see what you guys do next.

If the wallpaper cannot be salvaged, I suggest finding the best patches of it, removing it carefully, and putting it in an album to keep on the coffee table. Years later it could be a valuable reference, or at least good for a few laughs!

(I'd kill for some Liberty or William Morris wallpapers, myself.)

Amazing house. It screams for Something's Gotta Give decor.

Wow, what a beautiful home. I can't wait to see more.
Oh and also I'm jealous of the family moving in...those children - the memories they'll have! Sounds like a great home to play hide and seek, have friends over, etc.

I just finished reading: A Century in the Life of an American Summer House.
If you have an interest in American architecture, Gilded Age history, shingle-style cottages, or memoirs… I really loved the book. (Although it left me irritated that my great-grandfather didn’t have the foresight to build a giant summer mansion in Cape Cod.)

Wow - I don't know if I would have the heart to do all that work and turn it over to renters! I love the little corner bathroom sink, and that master bath - sigh! All those windows - all those bedrooms that might be looking a little bit tired are going to be beautful! Keep us posted!

Call me! I would live in that place in a heartbeat!!!! With or without the wallpaper! I'll help fix it up. I will start packing my bags now! THAT id one of my dream homes!!!! Jealous, but sooooo happy for you!!!!

This is clearly a beautiful house, but it does seem a little wierd - the post does start with a "poor me" approach; yet the owners of this house are clearly in the 1%, and this blog, which started about simple living, it helmed by someone with multiple summer houses, who grew up in an UES townhouse, attended a private school and takes luxurious vacations on private islands. I guess it takes growing up with a lot of space to appreciate the lifestyle of no clutter.

Another option for the wallpaper-find a piece on the wall and place a picture frame around it, as if it was the picture. As a slight nod to history. You can keep the best piece without having to try and remove it. Even place some art in the middle as if the wallpaper is the mat. A quirky house needs quirky surprises. The after pictures are looking good-the house seems to be taking a deep, clean breath! Good luck and ignore the sour grapes gallery!

This is a stunning home to begin with and I am glad to see that no major renovations are being made to it...just some painting to brighten it up a bit. I also vote to keep that green wallpaper in the guest room! I love it!

$45,000 then is like $320,000 now, actually that is still a very good price.

@landoffrost, 8 bedrooms and 7 bathrooms? I'm going to guess this is SOH and estimate even if it was still uninsulated, the ask is probably between $5 and $10 million.

The guest room wallpaper is FANTASTIC! I love it as it is, on walls & ceiling.

One more vote for keeping the guest room wallpaper – a house needs history and whimsy. Also ADORE the bahtroom beadboard and that sink! And the wicker chairs :)

Kitchen seems to need help – I wouldn't have recognized it as a kitchen first...

I still have some original hand-marbled wallpaper in my 18th century home. It's not perfect (nor is it stinky or bubbling), and it's scraped away in many places, but I would never cover it up! At this point, it's part of the history of my landmark home. So, I say keep the green wallpaper!

What a beautiful home! I too am actually renovating my childhood home, but I must say, that you definitely hit the jackpot with this one. Such a big, beautiful cottage home - such a gem! DON'T let yourself being talked into selling it! (Unless you want to sell it to me, of course ^.^)

I agree, such a beauty--keep in the family!

I could never live in a house that big. I'd have to turn the whole first floor into a skatepark! All that hard work you're doing is paying off though. It looks lovely! Can't wait to see more! By the by, the gardens are awesome. That lawn makes me just want to run and run! What a wonderful legacy for your family.

Add me to the list of green wallpaper supporters!!!

You can't buy a studio in our area now for the amount we paid for our 4-bed house 16 years ago - location has much to do with this. Had we known this, we would really have stretched ourselves at the time (the beauty of hindsight!) When I read posts exhorting apartment dwellers to upgrade their rentals, I wonder if those renters are unaware that they would be far better off saving up for a down payment on their own first property. That aside, this is a beautiful home, and, yes, it is a daunting and costly task to renovate. Do you invest the bare minimum to bring it up to rental standard or go all out to make it your dream summer house as you are doing the work anyway? I would be interested to see the choices you make, and your rationale for doing so.

Oh, and I'm in the 'keep the green wallpaper" camp.

Why did you kill the wallpaper!? Like many others here I really love ALL the lovely wallpapers here. I understand you might want to remove it if it's in very bad shape - but please consider keeping it if it's at all possible. And perhaps take a lot of detailed photos so that someone might later reconstruct those patterns? Vintage patterns like those are the big new trend here in Sweden.

I agree with all the others about the green wallpaper, It is charming

but I understand that you want to freshen the palce up and NOT keep it the way it has been 40-odd years.....

Wow this is beautiful in the before's, what charm! I LOVE the retro wallpaper and the electic furnishings, it's the essence of a summer cottage. And huge! But I can understand wanting to clean it up and have a fresh palette as well... Can't wait to see the final results!