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I see faded paint, a carb clean/rebuild, new tyres/tubes, replacing rubber hoses/other bits, and maybe new wheels. Provided a title and a free engine, a fun and not horrifyingly expensive project. It looks like the kind of project I'd take on!
With that said, IMO the Twinstars aren't exceptionally popular or desirable so I wouldn't pay more than $1k. But of course, my opinion is based on the local used motorcycle market.