If its a Yugo M48 like the one pictured, $160 might be a little high of a price unless the rifle has been pretty much unused.
Check to make sure the safety works- make sure the safety switch can easily be moved through its 3 positions with the bolt cocked and in battery.
Make sure the bore is bright and shiny. For a $160 Yugo, the barrel should have no gray or dark spots in the bore. If the barrel is full of grease, ask the seller if they will clean the barrel for you, if they won't ask if you can bring your own cleaning rod to clean the bore with- it should only take a few passes with a solvent soaked patch to get most of the grease out of the barrel to get a good look at it. Also look from the muzzle end at the first 2-3" of rifling to make sure it isn't disrupted or crooked looking- I've seen a few rifles where the barrel is bulged slightly under or right behind the sight base, probably caused by a careless communist test firing the rifle without getting all of the grease out first.
Make sure the bolt closes and opens easily, it sholuldn't have a grinding feeling when you do either.
If everything looks good, and the rifle feels right, buy it, they tend to be good shooters for the price.