My other basic rule is if the frame paint is shot, the bike becomes a donor. If it is a cool looking frame, I'll store it away as a frameset (they don't take up much space), waiting for either powdercoating to get really cheap, vintage bike prices to get really high, or for my painting skills to improve.

My shop is a huge mess too. I try to at least zip tie matching wheels together, and tag them with which bike they came from. When I strip a bike, the parts go in a box, labeled with what bike they came off of. System is no where close to foolproof, as I don't always do it.

That bike might bring $100 in my market. And at $100, I really can't mess around with them, so this would be a part out.

+1 Redoing all bearings (new bearings and grease) is a given on any bike I flip, plus replacement of any worn brake pads. Anything rusty: frame, bolts, fasteners, etc., gets the oxalic treatment. I keep a bucket of OA solution after each rust campaign to handle small stuff.