Just remember project bikes sell at a huge discount to ready to ride, clean bikes. So if you have access to the parts, your return on cleaning it up and fixing it up would be significant.

I basically buy project bikes like this one, return them to good riding condition, and then they move on to a new home. Of course, I keep a lot of them too.

Vintage Japanese bikes are well appreciated around here.

So if you sell it on C/L, just be prepared to see it for sale again in a few weeks at a hefty increase in price.

But since you got it for free, your return will still be awesome. And with the right buyer, this bike will be back on the road and well loved.