My first bike was a 1982 Yamaha Seca XJ400. The 400cc engine was great on gas -- and it was powerful enough to get over 85mph (that was the highest the speedo would go). I don't think a 80cc bike, even for non-highway use, is a good idea for the street. Sometimes you need a little more power to navigate the streets in a safe manner.
I bought the bike used in 1995 from a college student for $1,100, including a helmet and saddlebags. The bike had 9,000 original miles on it. So it's theoretically within your budget.
The Seca is a sport standard so yes you could carry a passenger. Cargo space ... well, it's not a Gold Wing but you can buy a bungee net and lash your gear to the back of your bike.
Do you have any other safety equipment other than the helmet? I ask because your $1,000 budget will have to account for a good leather/textile jacket, gloves, sturdy boots and (optimally) riding pants.
You can't go to a store at the mall and buy a leather jacket that will hold up for motorcycling safety. The mall jackets are not designed to protect you in a crash. You need a quality jacket from Vanson, Joe Rocket, A*, etc. which will probably run you at least $200, which is 1/5 of your budget. Check out the closeouts at
New Enough Cycle Leathers and
Motorcycle USA Superstore.
You should also invest in good boots. In some crashes, your ankle may get pinned between the bike and the street. Ergo, you need something that will hold up.
Quoted: Do I need to get a motorcycle license, registration, and insure the motorcycle? How much of a hike in my premium am I looking at?
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Yes to all three. Insurance will vary, according to your age, area and bike. The bike I mentioned above cost me $300/year to insure (liability + underinsured motorist) in Philadelphia.