I'd say yes. I believe the frame is cut a smidge short in the rear near the seat, but I don't see why it couldn't be made to work with one of Gordon's frame kits. Hell, some people cut the neck off of bikes to weld onto other frames simply because the "neck" is titled. If either you or your mechanic has decent welding skills, I would buy it. The backbone is intact. As long as he hasn't tweaked it by some hard riding without the side bars, it should be fine. Make the guy selling it give you a GREAT deal on it though. Stress how much it'll cost to get it professionally repaired.
A "good" K2 engine (SN to follow) two frames... the one pictured, and a "hard tailed" frame. The gold frame is titled (wrong the title is for the cut frame). Two seats, two swing arms, a K2 tank, oil tank, the triple tree, forks, three wheels, a set of "mikuni carbs" and all the odd and ends "in a Yugoslavian beer case"...
$350.00
Haven't seen it looking at the lot Wednesday.