Not a big deal .. but is the year he gave you off a title or off the serial / cap. plate in red circle ?
Titles can be wrong.
You could get $1000 back parting out that motor .. if you wanted to ..
Hard to tell how bad flake is under red paint, look on deck to see how bad blue is under red.
Flake .. if in pretty good shape can be wet sanded / compounded / buffed out to like new, or near new with a little work.
If it's very ruff and you can see / feel the flakes, it might be to far gone. if just dull and cloudy, might be able to save it.
Check under splash well for soft floor, it was a poor design for hull drainage, drain holes were two inches off bottom of floor.
Also any holes in transom were places for water to get in, sealant is old and the motor didn't come with boat when new so holes might not have been sealed right.
Poke around with sharp object, around any through holes and behind speedo tube mounts.
Feel around side foam floatation boxes on sides of stern for rotted wood on transom and wet foam.
With trailer attached to car/truck, stand on motor (be careful) and try to rip it off transom, noting movement of fiberglass / trim pieces / wood, might see a very little movement but not much.
Really can't tell how bad it is until you start ripping everything apart, but with warm humid Florida weather, would bet it has some rot, unless already repaired.
Picture is my bilge drain bowl, hole was drilled for hull drainage but not sealed and rotted, bottom of floor was sealed with resin, but water couldn't completely drain so splashed around and rotted.
Speedo pilot tube mount holes were not sealed and water got in and wood rotted.
Almost any CV will need transom / floor repaired. There 40 plus years old and had drainage problems.
I can link you to my transom / floor repair thread if you'd like to see what your getting into .. LOL