$3,000? I would buy that. It's easily fixable. Parting it out would net you a profit, or fixing it should be about $1500-2000 maybe. The drivetrain alone would fetch $2,000+. Those DSII rims are worth a good chunk of change. Reps go for $500 where I live.
If it was me: I would buy it and fix it up. I would get all the paperwork for the engine work though. That's a lot of work into that engine and it should be running great. Even in worst case, and te frame is bent, parting it out would net you all your money back. It just takes time.