If it's in decent shape mechanically it actually seems like a nice bus. You could probably use a lot of the current interior parts again if you insulate and put in another interior of some sort. It seems to have the major issues already dealt with, like the bath. The parts are there, it's just that to be comfortable in cold and warm climates it needs to be taken apart and insulated, otherwise you're going to need a huge AC during the summer and a good heater for the winter. If you live in a bus the insulation expense pays for itself over and over again. My experience with insulation is reducing my heating expenses by 2/3rds.
Considering those tires are pretty fried, I'd want to shoot for at least $2,500, based on tire replacement expenses. If you remove the already built interior carefully you could save a lot of money on your rebuild after insulation. If you're comfortable with a Cat engine, and many are, that could be a good bus for you. The rebuild would be mostly labor stripping the interior panels and removing the factory insulation. The biggest expense would be the insulation itself. Many of us favor spray foam insulation, but there is a $$ cost attached to that choice. Other prefer to cut rigid insulation panels to fit between the ribs which is less expensive. The thing is many of us have done one type of insulation, so we have no experience with the other type of insulation.
If you're thinking of getting into a bus you could do worse than that one. On the other hand AZ has a lot of buses for sale on Public Surplus. It depends on the type of bus you actually want and what you intend to use it for.
I had several short buses, then a long bus that went away pretty quickly. Now I'm in a medium size bus. My long bus was old and didn't like to turn 90* corners very well. I needed something more manuverable and I wanted a mechanical diesel.
The point is get what fits you. If you think that's to long you'll never be happy with it while driving. Most people prefer the long buses, but often the pusher RE is preferred. I bought a FE because I can't get a pusher in this length. It's a lot of work so get the bus you actually want even if it cost more. Your budget is easily doable to buy a good bus and get it insulated. How much you want to spend on the interior is a choice you can make later. Plans and choices change as you learn more. It's fun building a bus, but during the process there might be a little cussing.
