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what should I watch out for when buying a yz125?

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Test ride it. Make sure the gears, clutch, and brakes work fine. When I bought my 125, I didn't not check the suspension and later found that the fork seals were broken.

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$1650 seems a little high to me. Try to get them down closer to $1000 - $1200.

Here's a list dirt rider mag made for what to look for when buying a used bike.

http://www.dirtrider.com/tech/141_0504_10_things_when_buying_a_used_dirtbike/index.html

I'd also have them take off the seat to see how well they take care of the air filter and to also check if any dirt can get around the filter.

Have the owner start the bike and ride it around a little first. This will show how well they took care of the bike when they rode it. If he's riding around like a goon and screaming the bike in first gear, I'd move on.

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