I purchased this from a kid that wanted to build a cafe. For the price I don't feel I could have gone wrong. I didn't realize bmw wanted kidneys and first born for some parts. I guess that's why people around my area call it Broke Man's Wallet. 
It's all good. It's like taking an ice bath, the hardest part is jumping in and the first 30 seconds. 

I'm hoping to duplicate one of Jerem Motorcycles machines.

How do I attach photos?

Ebay is your friend, seriously. That bike isn't far off a proper restoration; it looks as if just the fairing and panniers are missing. Anything else that needs fixing you'd have to do anyway.

Photo album

https://photos.app.goo.gl/PVbSxt3i8yKHkwyo8

I'd definately go for the restoration. It'll be cheaper, prettier and more practical than customising it.

It doesn't look like the previous owner screwed it up by "looping" it, so I would opt for a restoration.  Spend the winter detailing everything and making it all work properly.  Keep an eye on eBay for the parts you need.  You have 5-6 months before riding season hits again so there is no rush.  

Figure on doing a paint job, and the color of the parts won't matter when you buy them.  I have found that if you do all the prep work, the cost to have a local collision shop shoot them won't be too bad.  The upside is that you can have any color or paint scheme.  See the photo in my avatar.  That bike was made out of parts that were four different colors.

I removed the throttle bodies and had a look into the intakes. Do you think I should be worried? What do you think my next step should be?

https://photos.app.goo.gl/KPrdAUXnMeiwLdjp8

Doesn't look to bad and if you got all those parts on the photos you should have most of what you need.

There should be many miles left in the engine too, they go forever. I have bought 3 K bikes with less miles than that and run them over 100,000 miles. I bought another at 92,000 miles and it was fine.

Dont be afraid to use the forum here, lots of sources of parts that wont break you. If its any good to you I can tell you my son has a Honda VFR800 V tec that gave the usual well known Honda electrical problem. He sorted it out cheap but by the time he sorted it, it cost more than you would pay a shop to do a K bike clutch and rear main seal. He bought new exhausts for it...cost more than I paid the the Remus on my K1100. I see you would use a Remus too!

Header pipes cracking at the collector is a common problem on the four valve engines.  You can have the break repaired, and then help prevent it cracking again by putting a couple worm gear hose clamps around the header pipes to dampen vibrations.   

I put mine at approximately 5 and 9 inches from where the headers attach to the collector.  This is a fix that was apparently first used on police bikes and seems to work, at least on the two K100 four valve bikes I have owned,