[SEL] First Engine

[mullt at att.net]

I'm about to "take the leap" and  buy my first engine. It looks like it is a 2.5hp IH Model M with a Model L magneto. From the pictures it looks complete. The owner says he has not run it but that it was running when he bought it. He is asking $500.

Since I am new at this, I was wondering what I should look at to make sure the engine is in reasonable condition and that I can get it running without spending big $$$. Does the asking price seem reasonable? 

Any input would be appreciated. Thanks.

Tom