A couple of things I see --
1 - a Touring bike ? WTH was this guy tihnking ? Seeing as how he has that set up you know its been run @ high RPMs for a while
2 - When your WP seal goes out and you dump antifreeze into the the tranny , youve got something bad going on - Id plan on putting a crank in it, plus seals, maybe heads and cyclinders ( Im not sure, but, to rebulld a RD crank with TZ bearings , about 10 years ago cost me 500 bucks - )
3 - The exhaust port motors on these crap out and are VERY expensive to replace - Yep, the "power calve " on these was driven by an electric motor , maybe they are cheaper now, but, Yamah was "out" on them about 5 years ago and if you could find on, they were a couple of hundred bucks a piece .
4 - Its had the heck crached out of it - from the AM or repaired upper to the huge dent in the tank, plan of having it all painted
5 - 1k is way too much for this bike, Id offer 500 max, not knowing how deep your gonna have to dive into the motor/tranny , better to budget high . Id check wiht Moto Carrera or Spec II for prices on getting it rebuilt .
Im not sure about this one - while the RZ would be great, this looks like a sick one -