I was planning on picking up my first KLX 250s for pennies on the dollar until I got the pictures and saw this red liquid caked around the top of the engine. Is that a blown head gasket? I’ve been fortunate enough to have working motorcycles, so I am unfamiliar with what the problem is here. I am trying to find an inspector to get over there and give the bike a once over but until then, I figured I would ask you fine people. Any advice is greatly appreciated.

 

That looks...rough.
Head gasket is lower.
Valve cover gasket.

 

Is it actually a liquid? Photo's not clear enough to tell, but could it be some sort of gasket compound smeared around to block a leak from the valve cover?

Ride on
Brewster

 

It looks like RTV silicone.
Someone smeared some on rather than replacing the leaky valve cover gasket.
Not a deal breaker, but it may indicate that there may be other 'shortcuts'...
Buyer beware.