The problems are fixable, but not "normal". It may have been in the hands of a potentially incompetent mechanic and will need some work from someone who knows what they're doing.
I would suspect leaking valve cover gaskets (relatively easy) before head gaskets (hard). However, if whoever monkeyed with the valve covers last was incapable of correctly reinstalling valve cover gaskets on a Vee (pretty darn easy, really) no telling what else got messed up. You need to nail this down for sure before proceeding.
The lean could be from a stock height Vee with upgraded suspension, so that could be good -- when the rear end isn't sagging pitifully under its own weight, a stock height Vee will lean over WAY too far.
Or it could be that the sidestand was modifed as outlined above. You really need to figure out which before jumping in.
$3,500 is in the ballpark for a bike in great shape with no issues and a decent amount of farkles. What you describe is a possibly $1,200 bike, mostly thanks to the mysterious oil leaks.
2002 Suzuki DL1000 V-Strom, Dark Metallic Space Blue
1983 Suzuki GS850G, Cosmic Blue
2005 KLR685, Aztec Red - Turd II.2, the ReReTurdening
Last edited by bwringer; 09-08-2014 at 05:06 PM.