I think the cam is clean but the cylinders are rusty and a bit pitted at 700 hrs from sitting.

Do i:

1) walk away
2) pull cylinders and send to zephyr for a .010 grind or send to eci for cermanil
3) request some money off the price and fly as is and see what the oil consumption is.

Help please

From what I can see in the pictures the cam looks good. I would bring up the rust in the cylinders and expect some reduction in price because there will be some loss in cylinder life but I would not pull them. I would fly it hard and re-inspect after you have some hours on it.

+1

+1 get a concession on the price to cover a major portion of the replacement and put it the bank then fly it hard for 50 hours or so and see how it goes..

That 4th photo the cam has wear on the nose and thats the reason for the circular marks on the visible lifter. The edge of the cam is doing that. It may run 50 hours it may run forever, but Lycoming cams and lifters are weak. Did you do a real good visual on every lifter? I feel corrosion takes hold there first.

Mostly looks like normal wear signatures. The 4th picture is a bit worrisome. If there's no burr starting on the edges and you can't feel anythig uneven on the tip it's probably OK. I would check the face of that tappet. The tappets usually go first.

HOW ABOUT the following idea:

hold back some money in escrow and fly the snot out of these engines for 50 hours and if they are not burning oil, leave them be?

Mike