Yeah...dead cylinders/valves/rings. These cars (Tercel) have a congenital defect in, IIRC the rings. If you buy one, buy it cheap, esp if it's burning oil.
They will run for a long time with this condition, but depending on emissions regulations where you live it may not pass emissions testing. If you have a good mechanic that doesn't have a boat to pay for you might get the job done inexpensively.
Hondas are all interference engines, and the belt needs to be replaced on a regular basis; for that vintage I believe 60,000 miles, but try to find an owner's manual online for the actual recommendation.