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Unfortunately it looks worse than your picture. After a lot of thinking and reading I think I am going to have to pass on this boat. Just too much time. Thanks for all the advise. I will definitely post when I do get a boat.
Good call on passing on the boat. Since you were willing to put $8K into this one, you can find one for the same money that doesn't need all the work. Probably won't be 26 foot with a big block, but you can find something nice for that kind of budget.
Too bad, that's a real nice looking boat. But for $4500 + your $3k ($7500) you assume you'd put into it, you can find a turn-key boat for that and be in the water. Good call on passing.
My Crownline is not as big but I picked it up for right around your budget. It doesn't have a big block but does have EFI and a Bravo 1 drive. There is no work needed on it. Keep looking. I would just plan on buying a ready to go boat that fits your total budget.