I'd walk away. He works at a tire shop, so we can assume he could handle the oil pump r&r (mounting lo-pros on a large wheel with tps sensors is harder). He's probably selling it rather than fixing it because he is afraid of the internal engine damage himself.
The loss of power he described was probably due to the lack of lubrication, i.e. metal rubbing on metal.
As stated before you're probably looking at main bearings and rod bearings at the least. New rings are likely needed (compression/leak down test can tell you this). The valvetrain noise is troublesome also, if it ran withough pressure for very long you could be looking at lifters, camshaft, etc. depending on the extent of the damage.
Unless you plan on a stroker build or want to learn how to rebuild an engine, steer clear.