Sounds like a good deal. Yamaha has decent instruments. This one is a country type, quite "fat ass", so you will have a nice bass sound.
Check if the neck is straight and if the strings are not too far away from the neck. This shouldn't be the case. You could also invest in some lighter type strings, to make playing easier. If you or a friend have good hearing. Also check the tonality of the guitar:
"To check intonation you will need an electronic tuner. Tune your instrument to pitch and fret each string naturally at the 12th fret.
If notes played at the 12th fret are dramatically sharp or flat, the intonation may require correction." (from here).
Another good option is to look for amazing sounding cheap guitars is to look for a suzuki guitar. They have them second hand on ebay, they go around the same price. But they are almost exact martin copies (D-45 etc) from the 70s.