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I would say you paid to much, even if it is in good condition. I could get a Rancher that is 10 years newer for that money. You can expect a few things to go wrong just based on its age alone. The front diff is an "open" design, which isn't so great.
They do have a reputation for being bulletproof, so that is in your favor. Change the engine oil at a reasonable interval....same with the differentials. Keep the air filter clean and oiled, and adjust that valves now and then and you should be good. Get a Warn 424 if you want to turn it into a selectable 2wd/4wd.
That's not a bad price at all if it's in good condition.
I have a '95 300 Fourtrax 2wd that I bought new. It has been the definition of "reliable" and has been a work horse on my 430 acre ranch since it was purchased. The only complaint I have ever had about it is that it has drum brakes. If you don't submerge the brakes you should have no problem, but if you immerse them in mud/water, the seals will probably be worn to where they will let water into the housings and it will corrode everything inside. FYI, the Rancher was no better in that regard, having drum brakes or disc/drum combinations for the first several years of production.
You didn't say whether it was 2wd or 4x4, but recon was right about the Warn 424 if you want to have it turn worth a damn.
I would also do what I could to get the electric start working again if possible
A 424 is a kit from Warn (no longer in production) that replaces your front drive shaft with a split shaft & gearbox- you mount a "selector ****" on your fender that allows you to disengage the 4x4 and spin only the rear live axle. This redirects 100% of the hp to the rear axle and frees up your front end for better handling in tight trails. I have one on my 99 TRX300fw. They are not easy to find, and are no longer in production by Warn.
Also- I don't know where reconranger is finding any decent 2004 4x4 atv's for only $1k- but in any case, you paid an appropriate price- I've seen '94 basket cases for less, and mint ones for more. Any decent shape 4x4 atv is worth $1k!
I would fix that electric start tho- no fun trying to kick over a stalled atv in a deep puddle or on a steep hill!