Don't be ashamed.It happens to the best of us.? (( :
I don't know if I'd waste Continentals on the trainer.. I buy the cheapest tires I can find for trainer use.
If you can fix up the basement, I would do that. If you don't like the atmosphere of the basement (which could change once you work it all out), I would build up. I've heard building out is much more expensive. Because of the grading, pouring foundation, getting plumbing and everything.
Build out - no question. You are going to spend more money making the basement live-able. Also basement rooms will not be counted as living space by any Realtor, therefore your improvements won't get you any added dollars for re-sale. It sounds as if parts of your basement don't even have a concrete floor? Is that correct? I would go out and change the floor plan of the house so it flows well and is logical. No walking through a bedroom to get to any other room in the house. We have completed projects in all areas you mentioned, in your situation you need to build out - no doubt. Make a floor plan of your existing house using 1/4 graph paper. Then use *onion paper to lay over your existing floor plan and draw any changes. The onion paper allows you to see the underlying drawing as it is thin paper. Then when you are satisfied with the completed layout - transfer it to a new sheet of graph paper. Take your time and think out the layout of each room. Doors should open into each room, Hallways should be at least 40 wide, Windows are needed for exterior looks and also natural lighting. Check to see if your exterior siding/roofing/windows are still available to match the existing.