As a DM, I'd want the PC to have the invisibility spell. If the character does not "reappear" if they attack or cast a spell, I'd require improved invisibility.
For making magic items, I require PCs to spend as much as it would cost to buy them, generally. For potions and scrolls, I use the minimum cost for the range of the magic items (with some tweaking). Here, I'd call it either uncommon (if the invisibility fades when attacking/casting - ~100 gp) or rare (if it stays - 500 gp).
Note that the only game effects I see are disguising the identity and equipment of the user. If there were more (others have disadvantage on attacks versus them, etc...) I would reconsider.