First Blaster

Well I'm feeling a little frustrated. I'm going to break down the bottom end but I have to wait to borrow the right tools. But after thinking about it too much I wonder if it's worth it. The time isn't an issue, I enjoy putting the time into it but is it worth putting the money it's going to take into working on this? Should I just try to part it out (would it even be worth that)? I feel bad my friend put the $300 into it, he was told it had been running. But there is no way, somebody had already popped the top and seen it torn up inside. I'm just not sure if I should have him return it, part it out, or start putting money into it. I'd love some opinions. I know the frame is toast, and the engine might be as well...