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In 2009, when my grandfather passed away, I inherited his 1986 HJ61 (red car) with auto and 12HT with 250,000km on the clock. The roof has nearly rusted off!

I'm in Melbourne but flying to Newcastle tomorrow to pick it up and drive it home. I'm kind of going up 'blindfolded' at the moment because I have never inspected this car, but have put a deposit down to say i'll take it. I'm going to attempt to look over the vehicle with a fine tooth comb just to pick up on any defects/fault (which the owner says there isn't any). I would love to get as much advice on what to look for as possible, as I fly out of Melbourne tomorrow at 4.15pm. Please help me with your advice.
Ultimately, my goal is to use the 12HT engine from the red car (from what I've read from you guys, these engines are apparantly gold plated- or might as well be), but if the 2H is as good as it seems (you guys say that they last forever), I may be happy to drive around at snails pace for a year or two.
The questions that i'm wondering, chassis swap (white body on red chassis), or engine swap (red drivetrain in white car)??? Manual or auto transmission? 15" or 16" tyres? Please let me know what you think- good and bad.
Whatever vehicle I use, I want a 3" exhaust, 12HT engine, standard turbo (CT26 isn't it) rebuilt, boost slightly increased, fuel pump upgraded, etc...