You're making good sense about the pitfalls, and I think these might be great for me to bring up when negotiating price. It looks to me like the machine is in pretty good shape for its age and being a bowling alley machine. It also has a topper (that I didn't get in the photo) and seems stock.
https://ibb.co/pZV1Vx5
When I arrived the lights in that area weren't even turned on in that section of the building because, as they said, most of the machines are broken. It can't be making him money if it's not even worth it to the run the lights. The out of order paper in the machine looks like it has been there for 5+ years (it could be used on different machines when they go out but I don't think so).
If I can swoop in and buy it for $500 or less I think I'm going to. I have to keep it low on the off chance I end up with a paperweight. My wife won't be thrilled about the booby lady pinball but at that price she can't get too mad. I'll home it at a buddy's house for now if it comes to it.
I'll keep you posted about any developments, thank you again for your help.