We had a '03 Palomino 8801. I had to do some repair when I bought it due to poor maintenance.
I really liked it and it's construction was sound.
As Sidecar said, some say it's an "entry level camper". I think that's a term a lot of people like to use to say "I spent more money than You".
If you like it and it fits your needs then it then it's worth maintaining to a point. You only gave $500. If you built your own camper and bought used appliances you would pay more.
As to whether it's worth fixing, depends on what you enjoy doing.
I enjoy those kinds of project. I replaced the cab-over nose framing, roof framing and plywood over the bath, and put all new rubber on the roof of the 8801 I had. I think the total cost of repair was about $500 and about $100 was in polyurethane glue.
I bought most of the materials at Bontragers' in White Pigeon, MI. They are very reasonable.
