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It is hard for me to recommend doing the work yourself, only you can decide if you are up to the task.
Like others have said, begin with a compression test…I’m guessing you should see about 100PSI on both cylinders.
Next, remove the gearcase drain and vent screws to examine the gear lube. Raw water or milky colored lube spells trouble, no or very little lube draining out spells big trouble. In either case, the gearcase will need to be pressure tested to pinpoint leakage issues. The gearcase will have to be disassembled to replace faulty seals/orings. The water pump impeller should be replaced at this time also.
Generally speaking, the ignition and fuel systems will need to be inspected and overhauled. Do you have the two line pressure tank for the engine? If so, inspect it inside, it isn’t much good if rusted or fouled inside.
Doing this work isn’t terribly difficult if you have had some experience working on outboards, unless the engine has been used in salt water. Trying to remove rusted fasteners can be a real issue.
If you decide to have a shop do the work, you will need to look for an older shop facility with techs that have had experience with an older engine like this. Inexperienced techs and high shop rates often times lead to work done improperly.
Finally, it looks like someone has stripped the paint off this engine. Only you can decide if you want it refinished cosmetically. A cosmetic overhaul is a big expense for sure.
Please respond with specific questions you may have, this is a great engine that runs very nicely….