Overall this generation of VW's tend to be reliable beasties but buyer beware on this one for sure! $1800 sounds on the low end of nice, so I'd have it checked out before buying. It is after all a 24 year old car now and they were favourites for the kids to play with.
Make sure when/if the timing belt was changed, 16v motors are paperweights when those let go.
RUST, check for it, then check again. That is far from the original colour, I would be extremely leary of bondo and other cover-up techniques applied when it was painted.
Make sure your cousin is mechanically competent and knows a little about Mk1/Mk2 VW's. Buy a service manual. Bringing this beast to a mechanic will cause heart palpitations, especially when it comes to fuel injection issues!