Would this be a deal breaker?

I would say it's tempting,but,seems to have a few issues,how much cant really tell,it is also complete running driving car with # matching engine,also has a 4spd and several other parts along with it,all tho 4 spd might be the OD type,which you could use or get an original type down the road,at 5500 it may or may not be too high or too low thats for you to decide,whatever fits your budget is what works for you,realistically if you could afford the 13,500 offer car already done would be wiser,but if you are just trying to get one and dont mind the resto part[which gets costly real quik]then by all means do it,I understand being in the same boat as being only able to afford the project car and fix up as you go plan will cost more time and money in the long run but sometimes it's the only way to afford it and the deals may not come your way again[availability and financially]Since you think you can push him down on the price then thats what I would do,My personal opinion would be in the3-4k range,I mean you can drive it while you fix it and all the components that go with it,but it is and takes real dedication and a love for these cars to accomplish it and the road can be long and costly...they dont make them anymore and stuff is getting scarcer by the yr,I did such a project and after 8 yrs and 13k still aint finished and mine was a /6 car now 440 and was rust free and have done most all the work myself,will I ever come close to getting my money out of it?prob not ,but I will drive it,have it,have fun with it and all that jazz,for me it aint about the money or the worth it's the satisfaction and the gratification and the totall bad-***-ery[as Rob says] of the car and getting it to where my dreams of it become a reality,that said,not everybody is going to have the same opinion,not everyone has the same finances or the ability to work/skills or the place to work on them or the tools/knowledge to do so,hence these are the decisions YOU must consider and make for what fits YOU...and do you have what it takes to get it done and the resources/dedication? or get it and let it sit and rust all the way out cause you cant afford it or aint got the time and it was kool at the time to own one,or buy it ,drive it,fix it up and make into something kick ***? Only you know that answer....good luck