That's on the high side with that mileage; but not bad. The rust is more likely from the battery overflow tube not positioned correctly. A common issue. Get a longer hose; or better yet a gel battery. Pour some coke on it first, then rinse with water; then some of that rust removing gel; rinse, and paint. If your going to do any serious offroading; leave the knobby on it, and put an aggressive tire on the front. If not go with street tire. If you take it offroad with the street tires; air them down 12# or so. Avoid mud at all cost with those street tires. You can probably stick an after market spark arrester on that muffler. If you're not going to use that cyclerack; i'ld love to buy it(better yet; I'll trade a nice stock muffler it). Don't forget to lube everything. Change or clean oil, air, and fuel filters. Check all your electric connections, and all your major bolt tightness. You're going to love that sweet little mule. It's capabilities will pleasantly surprise you.