Swingarm / Frame Rust - Safe or needs work?

xs750NY

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Howdy,
Picked up this bike just a month or so ago.
There is a spot here on the frame attaching to the swingarm that i'm concerned about.
Does this seem like it's just surface rust that can be addressed "externally," or does it look like I should consider stripping the bike down and going through and having joints reinforced via some fresh welds?

Any opinions are welcome. I've been diving down the rabbit hole of restoration / upgrade work and it's running pretty admirably now. But i would put a halt to everything if i need to be immediately concerned about structural stability. Especially at a spot where, you know, the rear wheel could bend over and wreck me.

Thoughts?

Thank you!
IMG_2075.JPG
 
THAT doesn't look too worrysome. Scrape/sand away the paint for a further check. But it would have me checking carefully on the bottom of the frame cradle on either side of the engine. Inside of frame was not protected. Design will allow water inside the frame if it's been left outside or been heavily washed a lot. We have seen (rarely) cracked frame tubes from repeated freeze thaw cycles on frames with water in them, like a copper plumbing pipe.
frozen-pipes.jpg

Early frames (70-73) are a bit weak near the lower rear engine mount
 
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