In its present condition, $200 is not the deal of the century, but is a fair price. Assuming you will do all the rehab work, I would go for it. Assume any bike you pick up will need a saddle, pedals, bar tape and tires. Rehab the bearings and new cables and you are ready to go. If your friend is a successful flipper, he is going to know what the bike is worth.
Would I personally pay $200 for it? No, but I don't pay market price for bikes. Instead, I put A LOT of time in looking, and eventually find something for under market (almost always will need work of course).
But when you see what Miyata's sell for in some of the hotter markets, $200 is not too bad. You decide.
Last edited by wrk101; 07-15-11 at 04:24 PM.