The rust really hurts. Still, it's a good project bike for somebody, and I would think the frame makes it worth that much. Heck, *I'd* give you $100 for it. Now, if you were willing to put on a new chain, take off that water bottle, take off all the rust (gently!), replace the tires/tubes and brake pads, overhaul all the bearings, brakes and derailleurs, and clean it up a lot, you could probably get quite a bit more, maybe $200 to $400, depending on how nicely it cleans up. But that's quite a bit of work, and if you have to pay someone else to do it, it doesn't add up if you intend to sell.