That Reynolds 531 decal is a mid-1950's until late 1960's decal.
Since the bike is much younger than the seller says, it's not a 'patina'd' bike, rather, it's an 'abused' bicycle. I'd probably get it repainted, but i'd ask the painter to mix some black into the color so that it would not be a vibrant color.
If you're going to hang that bike, the rust is self-limiting and maybe you should not repaint it.
If you're going to instead RIDE the bike, the rust threatens its integrity, and a repaint will allow you to assess whether the frame has been structurally compromised (yet ...)
- Don Gillies
San Diego, CA