I have an older Sevylor XK1 and, *for what you want it for, it would be great, as long as the paddler is 180 or less and doesn't have a big butt or really wide hips -- and the newer K1 XDS model is built with superior valves and floor, and I can see that the self-bailing gaps they added could help that problem somewhat.
BUT for Class II or easier III, the older red XK1 can definitely be found for under $400 new on the web (I got mine for $200 used but lucked out), it's valves are very cheap/easy/fast to replace and adequate, it performs suprisingly fun and forgivingly, it's wetter and funner on the small stuff than bigger IKs, and it's plenty tough.
IF your paddler is bigger/heavier, maybe go with the Aire Tomcat (but careful to never overinflate becasue of outer seams), or the very lightweight but tough and high-perf NRS Bandit 1, or a used high-quality IK (Aire Lynx, NRS Maverick, Wing are sweet ones).
OR, if it's only for occasional
use and you really want/need to save money:
(View Video and Shopping)
PS: On the XK1, don't put the seat back too far and a broad-bladed 220cm paddle would be about right for most people, I think.