Re: advice on buying a boat that need work
If the compass was removed by the previous (late) owner, and it is in pristine condition in storage - that is a very good sign. If the compass is simply missing, that is a very bad sign. Ask the surviving spouse.
How big is your bank account? Don't tell me, but realize that a boat like this will surely make it smaller.
I have given you my assessment; I say it is worth ~$10K less, and the equipment that you need will likely cost 5X more than your amigo says... It's your money.
If the engine is sitting in water, it may, or may not, be toast. If the water is touching the oil pan, it should not be a deal killer. If the water is covering the starter, I would not give this boat a second look, and walk away.