Hi Chrissy, Welcome to the insanity. If you're going to trailer it Soda Blast the bottom, and as long as the fibreglass underneath has no blisters I'd just wax it and leave it like that. If you're going to leave it in the water then yes, you need to repaint it. Good looking boat, and like Phatdaddy said, don't count that Merc out. I have a 1991 200 Merc almost identical to yours and it pushes my boat like there's no tomorrow. If it ain't broke, don't mess with it. Just give it tender loving care and it will last a good long time.
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1987 V20 w/1987 150HP Yamaha on a Shoreland'r Trailer
1978 16.5 Airslot w/1996 120HP Force on a Four Winns trailer
1996 V21 w/1993 200HP Mercury on a Shoreline Trailer
All towed by a 5.7L Hemi Durango.
If God didn't have a purpose for us we wouldn't be here, so
Live simply, Love generously, Care deeply, Speak kindly.
(Leave the rest to God) 
Silence, in the face of evil, is itself evil. Not to speak is to speak, not to act is to act. God will not hold us guiltless.
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