Re: compression check
I like your approach. May I suggest doing a simplified cylinder leak down test while you have the plugs out. A worn valve, or mildly scored cylinder could account for the the low #1. Put some compressed air into the cylinder and see where it comes out. Also, how's the coolant look? Can you ask the prior owner about his coolant? If you hear reports of brown sludge, or serious discoloration, you may have combustion gasses getting into the coolant. Otherwise, its most likely just worn parts. good luck.
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