Here is an Update
I removed the head after striping 2 of the head bolts what a PITA to get them off. Well it turns out that the head gasket had a crack by the number one cylinder . I took the head to a machine shop and received the good new that the head is in good shape. The shop told me that the valves didn't need to be grinded nor did I need new valves stems put new valve guides and had the head resurface for $250.00. Now I just bought another diesel 1984 SD with 210,350 miles not sure which one to keep? The 1984 runs and was in a minor acccident front grill and hood needs some minor repair but fixable and it's a lot cleaner than the 87. Anyone near Atlanta GA?