We have decided to have the mast removed. Not only so we can replace any weak or rotted structure under it, but we will replace the wiring and lights as well when it is down.
We have decided on some interior cosmetic changes. We are going to fix the cabin side of the head wall (there's some damage at the bottom). Then put up some vinyl wall paper to make it look fresh.
We have also discussed the fact that we will have almost completely rebuilt this boat. Might not be as big and luxurious as a larger boat, but instead of having to spend lots of money on a new boat, we can invest in all the systems we would need for Nellie. Navigation system, solar panels., fridge/freezer, new VHF, depth finder, etc. Then we would be all set. I really like this idea and I think we could make it work. Stayed tuned... we will see.