A great cruising boat!
OK, I'm the biased owner of a '77 h27.
Original equipment was a one cylinder, SB8, 8 horesepower Yanmar diesel. If it is in good shape, it will do a great job of getting you in and out of the harbor, and cruise at 4 to 5 knots.
When buying any boat of this vintage, you should include a survey contingency in your purchase contract. You then hire a surveyor to check out the boat, and can negotiate any issues with the seller, or get out of the contract if the issues are too grave. In your case, find a diesel mechanic in your area, and ask him to check out the engine, since most surveyors don't have the competence you want on the engine. You'll want to have the engine checked in any case, and this will allow you to avoid a problem engine.
You can get probably get a Yanmar manual for the SB8 from Torreson Marine - Google for them online. But give them a call and ask what they recommend, since there are better books than the Yanmar manual, which is not the best.
You start the SB8 by cranking until it fires. The only difference with a gasoline engine is that it fires off compression, and sometimes you have to crank it a little until it starts. We ran our 23 year old '77 SB8 for 9 more years before replacing it with the current Yanmar, a 1GM10.
Good luck with your new boat. We have put over 6,000 miles on ours in 11 summers, and plan to sail her for years more!