The cool thing about cafe is it's basically what you make it. There are guys out there that consider their bikes cafe racers and all they've done is change the bars, and that's OK. Others think the bike has to be highly modified. The important thing to remember about cafe is it's more about attitude than hardware. do what you can afford, make sure it runs and stops well above all else, and have fun!
Agreed! ^
Your first step should be to get the engine running. defiantly work on that first because you can easily sink $1000 on cafe parts and have just that..parts. and no running bike. Do you know what the problem is this bike? Because if it wont start it could be something as simple as plugs or carb syncing. Or you could be pulling the whole case apart. This is going to take some time to figure out. Either way start there first.
Next think about what stance you want. Traditionally cafes have clubmans or clip ons and high shocks. I don't like clubmans on the xs because the front sits up high as it is. I'm short so high shocks are not for me. I actually have my rear end slammed on my cl350 because I can't touch the ground. You should be fine with the stock shocks if they're in good condition. Height is based on performance and if your making it for the look and for blasting around town, your liking not going to need to be leaned over taking corners at 100mph.
With clip ons your probably going to want rear sets or your going to look and feel like your doing the long jump at a track meet. You can spend all different kinds of monies here. The cheapest and easiest route is the "xs650 set" that loaded gun customs make. They're not the top of the line but they're not crap.
Next is the seat, again here you can spend what ever you like. You can make one or have someone make one for you or buy one from the many retailers online. Cafes usually have a bump seat. You may need to do some slight fabricating depending on what you do with. Easiest route is ebay- search for xs650 seat and get one from the asian's that build them for the stock mounts.
Those 3 things will give you the look and feel of a cafe. Beyond that is just refining the look and performance you want. You could go all out and put in a PMA, simplified wiring harness, pamco ignition, o ring chain, dual disc brakes..the list goes on an on. I suggest you start with those 3 and work your way to other things as you feel the need and get the money. Because going all out can wipe out your bank. especially if your just wanting something to ride and have fun on.
Use ebay and xs650.com for acquiring parts. Use Dime city cycles and mikesxs for oem and aftermarket parts. I only buy some mikes when its absolutely necessary. I like the folks at dime city- fun bunch, no their stuff, and personal.
Your looking at:
Bars: $100 (Tarozzi makes a quality product)
Rear sets: $250
Seat: #200-300