Is this truck worth it?

[Yamaha74]

I have been looking for a 1973-1987 chevy/gmc truck to restore for a year or so now. I found a 1985 chevy 1500 for sale down the street from my house. It is a long bed, automatic, 350, 4x4. He is asking $1,350 for it, but I think he will take $1,200. I drove the truck yesterday and it seemed to run good except it didn't seem to have the power a 350 should. The engine didn't miss or knock or smoke. The transmission seemed to shift a little hard from first to second, but he said it was rebuilt about 6 months ago. The transfer case was just rebuilt also. The body is in alright shape. It is going to need rockers, cab corners, maybe doors, and tailgate. There is a bed liner in the bed so I don't know how good of shape the bed is. The frame seems pretty solid to me except for some surface rust. The interior need some work. There is no glove box and the dash is cracked and some tears in the seat. I will try to get some pictures if the guy will let me. Do you guys think the price is right?