The pictures and description tell the story. Nobody shortens a mast. Obviously the boat has been dismasted most likely at the mast step. Never a good sign. I'd be very leery of that. Replacing a bulkhead is doable but not easy. At 6'4" laying in a locker and grinding fiberglass is a pain. The ports have been modified which indicates that leaks have been a problem. Most likely the cabin top on this boat is pretty flexible on this boat and the owner had trouble keeping the interior dry. Is there canvas that goes with pop top. How are the sails?If you have a lot of time and and are looking for a full time hobby rehabbing a boat this might be the boat for you. Probably worth $500 if the outboard works.
As far as Lake Erie goes, properly fixed this boat is o'k just don't expect to make any long trips. I wouldn't go out it if the forecast is for anything over 2 foot chop. As an alternative, have you looked at a Tanzer 22. Pretty good boats with a quality build. Here is one in Ohio that might fit the bill
1973 Tanzer T-22 sailboat for sale in Ohio
Classified Ads (Tanzer 22 Class Association)
The Practical Sailor's Evaluation of Three 22 Footers (Tanzer 22 Class Association)