If you want to go sailing right away then scrap it for what you can and invest is a better boat. I have just finished bringing an old boat back to life. The trailer and motor where worth pretty much what we paid for the boat.
Points to consider: It will likely cost twice as much as you budget. It will likely take twice as long to finish the project. If you can't do the work yourself on the boat ( ie not the motor ) then the costs will go up immensely. The time you put into restoring it is FREE ie don't count on getting paid back when its time to resell. Our project was a 22 foot swing keel. The hull and cabin were ok structurally. Everything else was pretty much toast except the quarter berths.
Now we did change ALL lighting
both nav and cabin over to LED'S and replace all the electronics and electrical. Also installed a new MSD with seaside pump
out and added a 20 gallon water tank. Most of the standing rigging
was re-used although we did have to buy new turnbuckles
and clevis pins etc as well as new sheets for the jib
and anchor rode
etc. She also required new paint
top and bottom side. The sails are in reasonable shape as well.
Below are the before and after of the cabin and the outside is similar.
Best of luck,