Tough decision. On the one hand you will learn a ton and have a boat that will see you well into the future if you restore. The folks here will guide you and you will benefit from the collective knowledge of all the guys that have undertaken a rebuilding task. You are a little short on budget, but you have enough budget to get started, and you can do the work one project at a time as you get more budget. The alternative, as you indicate, is to part it out and use the proceeds to budget for something else. How much you can sell stuff for is dependent on where you live. Around here ( N. Georgia) you could probably sell that 115 Outboard (with controls) in functioning condition for $800 - $1000 (based on what I have seen on CL). A trailer in good conditions would fetch $500 or so. That puts you in the $2000+ range for a boat budget, which probably won't put you into a boat that is water-ready unless you are very lucky.
Just analyzing the alternatives. If it were me, I would probably part it out, keep saving some money, and continue to look for a boat that I could afford with flaws that I could live with and/or address a little at a time. You'll be off the water just as long as if you had undertaken the restoration. My personal feeling is that (especially early on in the boat owner's experience) even if you restore the boat, the boating bug will bite hard and you will want a newer boat, or a bigger boat, or a different style boat (you'll find out your use is better suited to a pontoon, or a center console, for example). At that time you will want to sell this boat, but will be hard pressed to get a buyer to appreciate the full restoration effort and the fact that the boat will last a very long time with proper care. All a buyer will see is a 40-odd year old boat with a 30-odd year old rebuild outboard. Now the one thing I haven't taken into consideration is the sentimental or nostalgia value of the boat. If you think you'll never get rid of it, then that has to factor into the decision too.
Good luck, either way
Rgds
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