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Engine may very well have been abused. Might be on verge of self-destruct from over-revving and/or low-oil or infrequent changes. For something like that, at very least, I'd want a compression/leakdown test. And send out oil-sample to lab for analysis.
But yea, no more than $1000 for me. For just a little more than that $2k, you can get a 300 in much, much better condition.
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