what to look for in a used mustang.

[booster]

i previously owned an 87 buick grand national that got stolen,well i got 12,300 dollars from the insurance for it and now i wanna turn v8,i really only want an 87-93 5.0,i wanna spend 7000 total with mods,can i get a nice reliable good looking 5.0 for about 4000-5000?what are some problem areas to look out for?what kind of times can i run with a 5.0 with 2000 dollars worth of mods?everyone tells me not to get a mustang because it will leave me stranded,but these are people that own hondas and stuff and never had qa mustang,are they reliable?i really want one.