Update:
Thanks again for the suggestions here guys. I went thru the boat with my mechanic. First off, we were both pleasantly surprised by the overall appearance of exterior hull, interior and the engine compartment. There was hardly any mildew or odor at all in the cabin and has been well kept. Hull, stringers, all interior wood and trim looks great. I was very surprised to see virtually no water damage or fiberglass repair evidence. Propeller looks fine along with a spare on the boat. Trailer is beautiful, probably worth 1500.00-2,000.00 by itself with electric winch, good tires, lights, double axle, etc. Transon solid, and the boat is all fiberglass including all decking and none was soft. I will be however going back thru to check every inch. As for the engine, I really thought there is no way I will buy this after reading these posts and talking to my people. I dug deep into the hull and pulled every cushion and entrance and could find no apparant issues with the interior of the hull. I was, as was my mechanic, pleasantly surprised that it appears to have evidence of a recent valve job, transmission was redone, and overall, it looked great including the wiring, and organizaiton of the area including solid engine mounts, stringers, and battery area. Bilge area was decent, pump looked good, no real evidence of issues at this time. I am not concerned with not having enough engine power. This 307 has a good track record and will be somewhat efficient with only two barrels. I am totally fine with cruising at 20-25, most of the time will be cruising slow anyway as this is for fishing walleye and day cruising. I am on a small river between lake huron and Lake St. Clair and probably will not even take it to Erie, but could if I need to on a nice day. As for the straight shaft vs. outdrive, my people tell me, good for you, one less major expense. The drawback of struggling with reverse is not a problem since my particular boat slip is our cottage with a huge river to pull around and get situated. I do not to tight fit in any areas unless I am visiting. As for depth, no worries, I am in deep water areas and will play it safe. I have to check the wiring to the control board, but all wiring for bilge and engine looked fairly new and/or maintained, not much orignal left. In fact, the mechanic kept rattleing off items that were not original. After more conversation, we think it was owned previously by a guy who was best buddies with a top marina and my mechanic suspects this is why we have a well maintained boat all these years later. I got the seller to agree to let my mechanic take it for a few days to get a good compression and leak test (180.00). Upon one more in depth inspection and hopefully a short list of items to do from the mechanic, I believe I will make an offer of 3500.00 - 4500.00 depending on the mechanic results. Okay, give it to me, what did I forget? I will go back (2.5 hour drive) for a half day of investigating before I make an offer. Thanks again for helping out a rookie! (I have owned pontoon boats, fished my whole life, have smaller boats and watched my Dad blow thousands, so I am not a total rookie, thanks again.)