Just got a response from the seller. The N light is on more than not even while in gear. According to the previous owner started after installing the rear LED's. Am I looking at a short or sneak of some kind?

dont know on that one Ive never had a problem like that on my Kat...On my 77 Kawi kz I currently have a problem with the neutral light not being on at all...its not a bulb but sometimes the sensor in the tranny, if the oils low wont trigger it...I added oil but its still not there....I dont need it but I like everything to work..

This is an unusual symptom by itself, and may be indicative of a far more-common problem -- a failed 2nd gear (or failing 2nd gear).

About the only common mechanical problem caused by rider abuse is 2nd gear engagement failures, which come from a combination of one of the following (all rider-related):
(A) Failure to use the clutch during 1-2nd upshifts (esp. while under full throttle, at higher revs and without releasing the throttle -- basically treating the bike as if it were a full fledged racebike with gears cut for such abuse);
(B) Failure to use the clutch during 3-2nd and 2nd-1st downshifts;
(C) Cruising along at a fairly high clip (say 60 mph), seeing a redlight, yanking in the clutch and then slamming the tranny back to neutral before the speed drops down... Since it's a positive-engagement transmission, this subjects every gear to stress, but especially 2nd (since it's the highest multiplier gear between 6th and Neutral).

Aside from that, it may simply be a failing wire going to the neutral sensor at the tranny, or a bad sensor. Either way, assure yourself (by whatever means necessary) that there is no 2nd gear failure getting ready to happen before you buy the bike -- the repair is about 25 hours and $250 in parts, making it more expensive for most owners than simply swapping out a new engine & tranny as a single unit.

Searching KR for more info on "second gear failures" will yield additional info.

Cheers,
=-= The CyberPoet