Agree with the others, clean it up and sell it to get out of it quick, or get it running mechanically and sell that.
I under any circumstances would not paint the wood, it would almost be a crime. From the pics the wood looks in good shape and should come back to beautiful condition with some sanding and finish work. I wouldn't put all that effort into a boat being flipped, but someone buying the boat very well could.
It might just be me, but I have looked at several boats that someone "painted" to cover up ugliness, and it was a major turn-off. I would rather have an untouched boat, or something that was properly restored.
All said and done, I bet you will make the same money out of the boat, whether it's just cleaned up, mechanically 100%, or fully restored.