As with anything, it all depends....

How many hours has it flown per year over the past 5 years. In those
5 years, what do the engine logs show? Any top overhauls, cylinder
replacements, etc.? I bought a Cherokee 6-300 with about 1750 SMOH on
it. The airframe, interior and panel were in 10+ condition, so I
compromised on the engine time in favor of the rest. Logs were clean,
and it had been flown a lot over the prior 5 years. Well, about 100
hrs and an annual insp. later, it's still a champ with good
compression, low oil consump and no metal. I'm confident I'll at
least make it to 2000.

I had a Cherokee 140 that I bought with 1830 SMOH on it. It had a top
overhaul at 1500, and fairly regular use over the previous years. I
babied it and did 50 hr oil changes. It flew to 2200, and it was
still doing well, but I had the budget and time so I had a Penn Yan
exchange done for a 0 SMOH powerplant.

If, on the other hand, the engine has had low usage(like 30-40
hrs/year) over the past 5, and/or maybe some work on the engine beyond
the standard inspections and routine maintenance, you should think
twice.

The nice thing about getting a high time engine in good condition is
that those last hours, whether they are 10 or 200, are essentially
'free' because you've already factored in the price of an
overhaul(right??!) down the road. Once you accomplish that, the slate
is wiped clean and the 'new' engine is all yours and you should have
fewer worries percolating around in the back of your head because you
know how it's been flown(once you break it in).