Black water near the head is a possible area of concern. Did you smell the water in question?
I'd be more concerned about the rigging than the sails. How did it look?
I stuck my head as far into the compartment as a I could, but couldn't smell anything unusual.
The rigging seemed in good order; the jib sheet looked pretty weathered, but functional.
I don't think that you would want to get too excited about the prospects until you can get a look at her bottom. If there is a lot of blistering or keel/rudder damage, you could just be taking on liability and be upside down on this boat after all your repair costs/time compared to getting one that someone else just restored for a few grand more.
Good luck with the hunt!
That is my major concern, and at this low price range I'm not convinced it is really worth hauling out to have a look.
I dunno, I'll think about it over Christmas