If all of the above is true, (i'll let you decide whether or not to trust your co-worker's buddie's word), and I'm not saying it isn't, then it sounds like a sure deal to me.
The basic "drill" is a lot shorter at 10K miles too. Basically you're looking for what you would look for on any used bike. How's the paint, the chrome, the seat, do all the lights work? How's the rubber, the brakes? Here's the stuff that's often overlooked: Have a helper slowly compress the front fork (front brake on, weight on bars) and release the forks. How does the oil film left behind look? Dirty, contaminated with water, rust colored, or practically invisible? Do the same with the rear and listen for any strange noises such as loose components. Check the coolant in the radiator ( if the owner doesn't mind you removing the tank to do so) Are there brown or black blobs floating around possibly indicating a blown head gasket? Drain a little fuel from the tank (turn the valve to prime) Any evidence of water or rust? And finally, Assuming you've already got the tank off to ckeck the radiator, "read" the plugs and check the compression.
The center electode and insulator of the plug should be, laugh if you like, about the same golden brown as a toasted marshmallow. Dry and black, overfueling.
Wet and black, oil problem or SEVERE overfueling.
White and dry, lean mixture and/or overheating.
Broken or chipped, detonation (bad timing problem or way too much carbon in the chamber).
As far as the compression check goes, the factory spec is 134 - 206 Psi. There is no mention of a variance spec, but a good rule of thumb is the lowest reading cylinder and the highest reading cylinder should within 10 - 15% of each other. Above 206 would indicate excessive carbon or a foriegn object of some type lodged in the cobustion chamber. Below 134 could be anything from misadjusted valves to a cracked cylinder,
One problem with these bikes is the valve seats can pound in over a period of time (ussually above 20k - 30k miles) and cause the valves to be held open, but with mileage that low, you shouldn't have to worry just yet.
Another problem is at about 20k - 25k miles, the cam chain guides have pretty much had it and will need to be replaced.
And most importantly, ASK QUESTIONS. And listen very carefully to the answer. An answer like "Oh that, I forgot all about that small leak. I do have the replacement part though, and I'll include it with the bike." is most likely a sign the guy really did take good care of the machine, but just got busy and needs to let it go. An answer like "Well, the bike is twenty some years old and they don't last forever. So you want it or not?" could (not always) mean that there is more to it, he knows it, but just wants to sell you his problem.
And give some thought as to how much you want to spend on this new found gem down the road. It's really cheap insurance to change every fluid and filter just so you have a reference point to start your maintenance schedule. Yes I do mean every fluid, brake, engine oil, final drive, coolant, all of it. A new set of plugs never hurts either. And it sounds like at least a rear tire is going to be in your near future.
Don't bank on spending $800 for this bike and riding it for years with no problems. It is old, and the price of parts does go up as availability goes down.
The dreaded carburetors. I don't know who in the &*% ##@@#$ #$@ designed the carb and airbox mounting on these bikes, but I do know I would like to plant my foot up his ass! They can be quite difficult to get back on with the stock airbox, but it's not impossible. Another solution would be to just get the stock airbox out of the picture completely and put a jet kit in the carbs since they are already off the bike, and go back with filter pods. It's a lot easier to service, and oh yeah, the power increases
Don't get discouraged, I'm not trying to say that these bikes are junk or anything like that. They are reliable and an absolute blast to ride. But they can get a bit finicky from time to time, like anything mechanical. Just be sure that you know what you are really buying. It's not hard to sink well over two grand in a bike with a blown motor, worn out shocks, damaged carbs and a bent fork.
Hope that helps. Sorry for the long post, but you asked.
Later,
SS