First of all, you've got to decide if you want the car or not before you start modifying it. That's where this site will come in handy. $5k is on the high end but might be a good price if the car has low miles and is in good condition and is exactly what you want. I would shop around and see what else you can compare to. Next, to get this car to safely and reliably break into the 11's will take a considerable amount of money. It looks like from your post you want to go with heads,cam,intake, supercharger to do this. This could easily run you another $5k by the time you get everything to support the above. You could find a car with the parts you've mentioned already installed and be out less money in the long run. I've personally gone the route of buying a stock car and doing all the work myself which I think is a lot more fun. Although it is more expensive and a lot more work. I used to own a '68 Camaro, so I made the Chevy-to-Ford switch. 11 years and three 5.0's later and I'm glad I did. Regardless, if you want to go fast and have plenty of aftermarket parts to choose from, 5.0 Mustangs are one of the cheapest/easiest ways to do it.
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'89 LX 5spd w/ 65k miles
Ported stock heads, TFS Stage1 cam,
GT-40 intake, 70mm TB, 76mm MAF,
MAC headers, Flowmasters,
3.73 gears, Steeda Tri-AX, Mickey ET Streets,
Vortech V1-SC, 38# injectors, Crane InterceptorII
7.9's @92mph (traction enhancement devices needed)
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