I bought it. The engine appears to be mechanically sound. Had a good old diesel mechanic go through it (as I live in NJ) and my agent (best friend) doing the business on my behalf out in Washington is not a diesel mechanic. All good other than the obvious neglect. I will install a new timing belt, serpentine belt, water pump impeller and filters plus polish the fuel. There was not water or fuel in the filthy engine oil. It started slow, indicative of a fuel issue, (and weak starting battery) but once running she ran fine. They did not go to WOT due to the missing trim tab and rough weather, but they did make 3600 rpm without incident. There is a lot of maintenance work to do on the engine, but being a "boat guy" and retired, time I have (until I don't).
As to the smell and filth- your description was kind. Dirtiest used boat I ever bought. I'd say a solid full week of work to get just the interior clean. After two full days I have gone from the entryway to the aft end of the galley sink (including that awful head) with a thorough deep cleaning, including removal of the the compartment doors etc. to wash and rinse them. Today is the sink, fridge (particularly nasty) and helm area...if I get that far. Then across the bridge and down the other side. Finally, all of the soft goods and walls, ceiling etc with steam and upholstery cleaner. The best description for this boats interior is gross! But at less than $.50 to the dollar (basic used-market selling price) and the cost of my time and labor I think she can be "saved" and provide a good clean reliable boat for some inland waterway explorations later this summer. I am glad you passed on it but could not agree more with your observations. It is at least a month of hard work to bring her back.
The hull might come back. Not sure? My local fiberglass / paint experts stopped by to see her (both loved the boat) and think she has a chance but with the caution she is red and red is always a pain in the ass color when it comes to longevity. So I'm thinking of Seattle Gray paint somewhere down the road when I tire of- or no longer can do the work a red hull requires.
Time is money and if you have to pay others this one would be a particularly large hole in the water to fill. This is the stuff I do, so in the end it keeps me out of the bars and busy (not to mention poor!). Judging from your note, I think you made the right decision, she is a pretty big rehab project. I'll post pics down the road for the Tugnuts forum to see how she shapes up.