With a long-overlooked, falling-down historic property in Kennebunkport, one couple took a renovation leap of faith. Standing at one of the highest points in Kennebunkport, where Cape Arundel juts into the sea, Lori Ray knew she had found something special. There, tucked into the woods—a stone’s throw from Ocean Avenue and a five-minute drive from the bustle of town—was a rambling 1905 structure laid with original heart-pine flooring and flooded in natural light. Marvin designed a new beveled window to bring natural light to the staircase. Note also the original commissioned painting in the style of Fernando Botero. Not that the place looked particularly special right then. “The property was in shambles,” Lori says. Except for a few tweaks to the kitchen, “the home had not received any remodeling since it was built, and it had suffered from its use as a tenement house for workers at The Colony Hotel,” just around the bend. “The home had been divided into several apartments, and it had two outdoor staircases to the second floor along with many makeshift add-ons,” she adds. In other words, the house had the bones of an elegant historic property, done over as a dorm. But Lori...