What i looked for when i picked up my Non-Colt RR...
1) Any surface damage, especially spots that look like repairs. Keep in mind there will be some bumps, scratches and faded finish as these rifles are 30+ years old.
2) Magwell fit. Some of the Non-Colt RR have mag fit issues, usually too tight. Check a USGI and Pmag and any others you might want to use. Usually by this point owners have had the mag wells refurbished and this is less common these days.
3) Upper/Lower alignment. My M16 fit the upper it came with fine, but is VERY tight with new production uppers. Most people just file down the inside of the pin hole of the upper, dont touch anything on your $15,000+ rifle
4) Focus on just the lower. The upper, stock, pistol grip mean nothing as they are all replaceable parts. When i got mine i stripped it down to just the lower and completely rebuilt it with brand new parts.
5) Shoot it if youre dealer has a range.
Based on your pic it looks like a pretty solid lower with most of the original finish remaining.
Also, I believe the lowers were manufactured by Olympic Arms as Semi-Auto AR15s and were purchased and converted to full-auto by various companies such as SGW, PAWS, Frankford Arsenal, etc...