Need some advice on a buy that has turned into a "project".

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Same old story, went to look at a car wearing rose colored glasses and came home with a way bigger project than I wanted. 1999 Impreza RS. Runs and rives fine, it's going in next week for an inspection so I can figure out any actual mechanical work it may need.

My issue is rot, the back inner wheel wells are bad, and the rear quarter panel fenders are really bad. I don't really want to spend a bunch of money, my plan at the moment is to Craiglist some offset rims and amazon some universal fender flares and a fender rolling tool. Roll the fenders as they are and then treat/paint the rot. Then I would just mount the fender flares and the offset rims and call it a day, maybe a maco paint job this winter before it hits the garage. Tell me how dumb this is? Or am I on the right track here?
 
if you have the skills and time go ahead and fix the rust.

a couple of thoughts, I live in the land of rust, the spots that are obvious are just the tip of the iceberg far too often.
It would pay to take a good look underside and check structural stuff and suspension bits. Those need attention first then worry about cosmetic stuff.

As far as painting you could go the cheap route and paint it by hand. I have had buddies do that often and for a beater car its a good way to go. Painting is an expensive proposition usually. Another option that is usually cheaper is wrapping. It lasts surprisingly well and is much cheaper.

Is this your only car, your daily driver as it were?

Depending upon that then I might look at it differently.
 

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