I'm looking to get a small twin myself. It would seem that a $200 buy in would probably be easy to recover from simply by partingit out. I don't want to get inot too much of a project, needing to source parts and such so I am willing to pay more for a clean, complete bike.
These are the factors I weigh on any Honda I buy. What is the condition of the seat, tank (paint and rust inside) gauge faces, spokes (rusty or loose), original exhaust and overall conditin of the hardware (rusty bolts etc) and chrome. This i my guide. If I found a bike I wanted with all of these things in decent shape, I would pay easily $500 even if it doesn't run. YMMV