as is, I'd pass.
If he'd let me throw a oil gauge on it as a check.. and it showed some operating pressure at hot idle.. enough for you to use for a few years before a rebuild.. then I'd offer 1200$ if i really really needed a 2nd tractor an nothing else was around.
IE.. if it can hold double digit hot idle oil pressure.
i notice one front hub cap is missing. plan on replacing the bearings at a minimum. maybee the spindle..
i'd sure seal it and repack the bearings.
overall.. I'd simply pass unless you just need wrench practice.
I'd throw another 1000$ with that 1200$ and buy a real tractor.. like another 00+ series..