Not a bad deal. It's not a bad looking start, I've seen worse. And you can pick up running 200x engines rather cheaply. Luckily Honda made a lot of the 83-85 200xs', so parts are pretty cheap and plentiful unless you have to have a museum restore. It won't be much worse than rebuilding a 185s and you don't have the auto clutches to worry about. Sounds like a project.
Nicholson 500x (Project)
Nicholson 185s
Nicholson 110 (That takes an atc70 tank)
Ascott 500 head/350x (Project)
Homebuilt Racer Chromoly Suspension 110 (Ragin Runt)
PK Racing Suspension 70
A+ Inc Suspension 70
AWS Aluminum 90 frame
Hi Performance ATC Suspension frame rd350
Hi Performance ATC Suspension frame 90