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Oh I can diagnose the faults on the engine, cracked turbo manifold and probably fucked turbo. Probably big end worn due to contaminated oil. Burnt valves too. As that what usually happens.
You can buy the full rebuild kit (Inc valves and pistons) for around 800 now and is twice what it was. All the bits are from Germany I think.
How cheap, and how shed like?
Were the exterior panels in good nick? Seats can be changed, and the engine rebuild kit includes all the bits that go wrong. Might as well go full barabus engine spec.
Reality is if it is cheap and you have the skills they can be fun.