Hey everyone, first time poster!

I just bought my first (used) bike yesterday. According to the seller, it's an old-school (circa 80s) Schwinn 12-speed. I've owned other bikes, but mainly mountain/bmx. I need some help/suggestions because judging by the looks and ride, it needs some work.

I was thinking of painting it (best options?), ripping off back break, converting it to a SS/FG, new tires? The guy said if I took some steal wool, it'd clean up the bike real nice. But like I said I'm pretty new to these bikes. Thanks!

Without flash (actually looks decent):


With flash (yikes):