I'm an old fogey. Take that as read.
I think the olden days are on the way back. Think of Monty Python and the "you were lucky sketch!"
Look at it this way. You have what you have and there is no more money coming down the line for a while. Live with what you have. Do what you can with what you have. Weigh up the pros and cons of just living with it as is. Paint it all white as a stop gap. Don't do anything major until the overall economy improves and lending frees up.
And in the end, your friends are all in the same boat - get them around for a painting party, have a great evening party and plan the extension for when things improve.
mf