Hi,
My first proper post so please excuse me if it is more long winded than is customary.
I got my 81 R65 for about $1100 but it was in pretty poor shape. Regarding the master cylinder, mine leaked like an alcoholic with a prostrate problem when I got it first, the master cylinder repair kit from motor works sorted it out no problem. About $50 I should think. Check the underside of the cylinder to get the diameter to purchase the correct kit. If that doesn’t work I’d try and source a second hand cylinder from a write off.
My tanks was similarly rusty, what I did was put a about 2 cups of very small diameter ball bearings in it, l sealed it up and then put it on a rotating lathe for about 4 -5 hours at fairly low RPM. Then pour out the ball bearings and rinse with petrol. Allow to dry. I then used petseal to seal the tank and have had no problems with it at all since. It is a good idea to change all the fuel lines and put a new karcoma tap in there while you are at it, old fuel lines disintegrate after a long enough period. I also use an inline fuel filter from moto-bins to keep the crud out. Alternatively a second hand tank can be found easily enough on e-bay.
Is it worth it? Well I would go back to the guy and say that anyone who buys the bike is going to have to spend at least a few hundred bucks to make it a practical ride.
Consider the forks, shocks etc. (mine was like riding a farm gate when I got her) and I would definitely take a good look at the electrics before I parted with any cash though, they were a nightmare on mine and expensive to sort out. Bear in mind that a bike that has been laid up for a very long time will quite probably need a number of seals replacing also.
See if he will reflect these potential costs in the price.
Good luck,
Simon