I beg to differ.
Had other vehicles with over 200K on the clock...multiple other vehicles with over 200K on the clock. Some as old as 1988 models, others the same age as this 4Runner. Never had or worried about any of the issues you read about here. So you can stop your generalizing.
I stand by my opinion that I wouldn't buy it. Double that because it's a V6 from the first year of that engine...and those are prone to head gaskets going bye-bye.
For the kind of money we're talking here there are better options. I'm just telling it like it is. If my brake booster goes south I'm up the creek with no paddle. I'm just praying mine holds together. I did manage to get my exhaust manifold done. And hood struts. Still gotta do both CVs. But my money is literally all tapped. If you do buy it though, I wish you luck. I love mine and enjoy driving it...but at the same time I know that at any time it could get parked.
I'll give you the headgasket issue. But I still believe it's not a widespread problem. 2003 is now a 10 year old vehicle, so if a headgasket goes, well, I guess it's par for the course. I have a 2005, so who knows. I hope they don't go anytime soon.
I also agree that for that kind of money, you can get something better. This of course depending on what they want to use it for.
As far as higher mileage cars, like BlackworksInc said, these are modern vehicles with (painfully) expensive parts. EVEN if you go to another manufacture, you are STILL going to run into some sort of issue that will be expensive. Your 1988 vehicle is not fair to compare, b/c its pre-ODBII.
I suspect my heads are ok for now, but it wouldn't surprise me if they do go. YES, I'm totally F**KED if they do go. Transfer case actuator: My transfer case hasn't been switched over to 4 wheel drive mode in a over a year (we had a lousy winter last year). If my transfer case kacks on me, yep, you guess it, I'm screwed. All in all, I STILL wouldn't call the 4Runner an unreliable vehicle. Why? Because I got it used, not new. If it were new (below 100K miles), then I would totally call it a POS. Anyway, I knew the risk when getting a used 4R. Realize too, that I'm coming from a Heep Grand Cherokee (arguable the worst SUV in the world in terms of reliability).
WXman, I hope you get your issues resolved cheaply. I ALSO agree that if your particular vehicle becomes a burden financially, then one should consider walking away from it. (selling/trading/etc)
OP: Things to look for (you can find this info if you do a search), but here are some highlights:
1) Headgasket on V6 (has it ever been replaced?) If yes, then good.
2) Transfer case (look for leakeage by actuator)
3) Get documentation that the tranny has been serviced at least once every 100K miles. By now, it should've been changed twice now.
4) Does it have XREAS? Do they leak? If so, rip em out and get "regular" shocks.
5) Seized calipers. Not overly expensive, but still a pain.
If you can't verify all 4 items above, then you can't be sure that she (4R) is in good shape. If the body/interior is well kept, then that's a good sign she's been taken care of. Still, make sure. $7K is still too much IMO. I'd chew them down to $5K and see where that goes.
Can't think of anything else that 4Runners have "issues" on.