Sounds like you'll get a rust free car for less than $2000. If you don't like it and you think you can get it back at home, then you've gotten a free road trip and a good learning experience out of it.

An old trick for water in the oil: Put a lighter to the oil on the dipstick. If the oil "spatters" then it's wet. Also look at the dipstick for signs of water like corrosion pits or white sludge.

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daBenz - 1970 220D