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Working on a friends 1999 yz125 help?

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hey my friend just bought a 1999 yz125 for $350 because it cant get into neutral. my friends never had a bike before but isnt braindead so hes having me do alot. any ideas on why it wouldnt go into neutral? he says with the clutch in it rolls and can go up and down through gears and he can bump start it. any ideas? iv worked on bikes but this will be my first time opening up a 2 stroke mostly on my own. iv helped friends do theirs but theyve done alot. and the bikes in fair condition, were thinking once he gets better hell get a newer bike, how much you think he could sell it for?

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