Most likely you are correct. The Nytro motors are pretty durable, but one thing that will kill the bottom end, is oil starvation. Normally what happens is the rod bearings will get damaged first. Then if he runs it "to see if the motor is ok", it will spin a rod bearing. Once the rod bearing is spun, if the owner keeps running it most likely it will pitch the center rod through the block. At that point your looking at a complete engine replacement.
If you catch it right away and don't try and run the motor while its hurt, then the bottom end can be rebuilt. However if it gets to the point where its spinning rod bearings then the cost of repair starts to go up dramatically.
If you decide to buy it and it has a spun rod bearing, but hasn't thrown a rod yet. You'll want to pull the valves and check them for straightness. What can happen is the piston can move higher up in the bore (due to the excessive bearing clearance from the spun bearing) and "kiss" the valves. When this happens it may bend the valve slightly and cause it to hang open. If you don't catch this during your rebuild, the bent valve can hang open allowing the piston to contact it. Once this happens the head of the valve can break off and its game over for your newly rebuilt motor.