A stockish RZ350 can easily reach high 50's+ horsepower at the rear wheel .
Yamaha claimed 59hp for the 31k that was sold in Canada and Europe and 63 for the later 1UA models. That's at the crank of course. The 48H that was sold in the US was so choked up with emissions control kit that they claimed 52 hp for that. Most of that kit can be removed though.
I just finished rebuilding a Canadian 1UA motor that's in a US 48H rolling chassis. It was a bit of a budget build. Its running a standard Yamaha crankshaft with +0.25 over with Vertex cast pistons on a new bore. I just did a quick cleanup on the ports to remove the casting flash.
The only big thing I had to do was to recut the head and squish band to get 0.040" clearance and 15 degrees taper so it would run on what passes for pump gas in 2021.
Its running Canadian 1UA pipes with standard VM 26's, standard airbox, standard Canadian 1UA ignition and running a rebuilt oil pump - so no premix as its much more convenient on a street bike.
I've attached a snapshot below.
Its about 58 hp at the wheel (rounding up... LOL) but it took some time on the dyno to get it there. The normal big hole around 5K was tuned out. You could probably get another 2 or so with a set of Keihin PWK28's and they would probably help with that dip at 9k. Maybe even more with a good set of pipes. Still it should be a good reliable street build with more than enough power for some hooligan fun
I do have a good port for the 1UA that will produce ~72 hp using the standard crank but needs a good set of pipes, PWK33's and an ignition, so there is definitely work to get it there. I'll dig out the dyno for that one.
I agree with the frame. I have ridden a stock frame RZ and FZR400 back to back on the track and there is no comparison.
The RZ can be made to handle much better though. CMR braced my race bike may years ago and I'm running a set of conventional RWU cartridge forks on the front. It did make a huge difference.
Neither are going to be a 400 ninja or R3 though, at least in terms of handling.