Personally I wouldn't give it another thought. If he's willing to pay to have it fixed, fix it. But do not short change yourself in the process.
I had a simular experance. Buddy called and asked my opinion about a skid steer. I would have went and looked at it but I was heading out for a week on a job. Just from what he described on the phone I told him it was under powered for his needs, smoke meant an overhual soon, pretty paint means nothing, and its priced about five times what its worth. "PASS"
Got back and found a message on the phone from him askin me to come by and see why it will not start. After seriously considering to pass myself, I went by to see if it might be something simple. Here the dist came loose and fell off the engine (Wisconson 4cly). We got it back together but it seemed like every other time he went to use it he had to fix something on it.
Needles to say it wasn't around long and he probably didn't put 30 hours on it before he sold it for a tenth of what he paid for it.
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Today's Featured Article - Restoration Story: Fordson Major - by Anthony West. George bought his Fordson Major from a an implement sale about 18 years ago for £200.00 (UK). There is no known history regarding its origins or what service it had done, but the following work was undertaken alone to bring it up to show standard. From the engine number, it was found that this Major was produced late 1946. It was almost complete but had various parts that would definitely need replacing.
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