First off-get a second opinion.
Second off-what is your "sweat equity" worth? Everybody that has restored something had to start somewhere. Most of them did not restore a '72 Pinto, which brings up; how much do you like this boat? If you really like the boat, are willing to spend the time, make and correct a few mistakes, lose probably a summer of sailing, and enjoy the satisfaction of doing the job yourself then repair it yourself. Otherwise sell it. The way we "save" money by doing the job ourselves is we "discount" our normal labor rate for our day job and don't keep a time-clock on how long it took us! There are numerous books out on doing this work. I'd probably start with Don Casey and the westsystem literature.