To part or not to part

Last fall, the XJ650J went down in a ditch of soft dirt at about 15mph. For a few weeks after that it was losing a lot of oil from what looks like the head gasket area and one of the cylinders (#2) wasn't firing (spark yes, detonation no). The crankcase breather tube was depositing a lot of oil/fuel into the airbox right in front of carb #2 and carb/cylinder #2 was very oily compared to the other three. I had a compression check done and the numbers are:
-------- #1 #2 #3 #4
Dry - > 60 - 0 - 110 - 100
Wet - >120 - 0 - 150 - 150

This mechanic specializes in Japanese bikes from late 70's to today. He advised that an engine rebuild would be in the neighborhood of $1500 and he doesn't want to do it (he makes more money cleaning carbs for $75/hour, which is what I paid for the compression check :? ).

I wanted to get the advice of the XJ community to see what I should do here. I'm leaning toward parting it out, because it needs to be running by the end of the month if I'm keeping it.

I'm thinking the first order of business is open the valve head and see if a valve is stuck or bent? But then the other cylinders probably need piston rings... Is it even worth it, with a ZERO reading on #2 and a 60psi on #1?

So there's my problem. Do I throw all my money into trying to fix this bike or do I part it out and get my landlord off my back, ride a bicycle to work for a while until I can afford some type of motor vehicle?

 

Find and buy a parts bike without a tile for 100$ or less. Make sure the motor is good and use the parts to fix yours.