Well done on the purchase. As @mlr has been saying, you can start to address the needed stuff before worrying about wheels or paint but then it all comes down to your budget.
Are you planning on making some power or do you just want a low key daily that's a bit of fun? Your goal will kind of move the discussion direction.
I think Ben's 'mental' comment kinda matches my opinion, I've never seen rust there on a 33 before but that's not saying anything, just that its not a common place to see it.
When you work on your budget you can work on whether to fix it yourself or not. I think that irrespective of your plans, you wont make it look worse than it is and once you've cleaned it and painted it yourself you can work out next steps. Just don't leave it to get worse.
M-Spec eh? These were more easy to spot in the series 1's and series 1.5's and I'm actually a little dubious about the series 2's even having an M-Spec. I'm happy to be corrected here.
Welcome to the site. Lots of people with lots of knowledge, you're in the right place.