If it the enclosed-chain model XV920, it is very rare in North America (especially now that it's 20 years old).  Finding a wrecked one and finding or fabricating parts to repair it may be more troublesome and/or expensive than what you would spend on this one.  If it's in decent shape that seems like a very fair price, but it would be a shame to cut it up.

I would go ahead and do it.  I purchased my 920rh in february for $1500 american.  It already had a few modifications such as new springs (progressives) and wheel and brake upgrades.  I am in the process of cafeinating the bike as well.  They make great cafe racers as they are narrow and torque-y. It is possible to make rearsets relatively easily from the existing peg mounts.  I will be making bodywork this fall for the rear end to go solo.  Can the stock be any uglier?  Let me know if your are interested.