If this is the Onan, I have done extensive work on my genset due to some water migration.
The bottom line is that this is a great genset. If there are some rust streaks, the cause can be mitigated and any concerns resolved.
I bought my 2017 R31CB with 60 hours on it. I noticed some evidence of rust from the genset. We did everything we could during inspection and survey to reproduce some sort of leak but could not. I ended up suggesting we take $300 off the agreed upon price knowing that eventually I'd have to take care of something.
The rust that I noticed came from the bottom of the sound shield housing. I also noticed some corrosion on the starter, indicating it was coming from somewhere above.
After purchasing the boat and putting well over 100 hours on the genset, I kept noticing a little rust every now and then and a little more corrosion. Eventually the starter and oil sending unit failed due to corrosion (About $300 dollars to replace - my labor to instal). As a bonus, I developed an expertise in working on the genset and art of body contortion.
In the end, I found two suspected areas of water migration. The first, I identified small leaks around the white 6" round access ports on the sole of the cockpit. Interestingly, these leaks were occurring because the access ports are mounted where there is a combination of nonskid and smooth surfaces. When the screws that mount these portholes are tightened down, it slightly contorts its otherwise perfectly shaped sphere. This allows for water migration through the area between the treads and frame of the ports. Water drips right on top of the gentset sound shield, evidently finding its way inside.
Also when taking the engine apart several times, I decided to just check everything for tightness. I was able to tighten all of the hose clamps a bit more, and even cinch the screws on the heat exchange down a bit (I think this might have really been the culprit, but water from above seemed also probable). In either case, problems found and problems solved. No more corrosion, no more rust streaks.
The bottom line is that some rust streaks from the generator should not kill an otherwise good deal and these great boats. As well, I don't think there is a better small generator than these small cummins.
The options you might have once you get down to final purchase, if you have this problem, is to push for the issue to be eradicated (which sometimes is hard to find at the time). Or, come up with a dollar amount that will make you good with the deal, knowing you will probably have to address it at some point in the future. I was good with the deal.
Let me know if you have any more questions.
Best,
Bobby