Looking for advice; good deal? Volvo with 5.0 V8

[playererf]

Hi, I'm 16 and looking to buy my first car, but I want something a little unique. I have always loved sleeper cars (fast but look slow) and I just stumbled onto this on my local Craigslist: http://boston.craigslist.org/nos/cto/2548233103.html

In case the link doesn't work, it is a 1983 Volvo 760 sedan with a 5.0 302 V8 swapped in. This is the same engine used in the 1989 Fox Body Mustangs. The price is $2500, and the car needs a lot of cosmetic tlc. However, I actually might prefer to leave the outside looking ratty, just to boost that sleeper image.

The car has some engine mods, most notably GT40 heads off a 91 Cobra. It is equipped with an automatic overdrive transmission, dual exhaust, sway bars and a locker diff.

I have $10,000 in a bank account saved for spending on a car, and I would prefer to spend about $5000 on the car itself and the rest for gas, insurance, and other expenses for the next few years. With the leftover money, would it be feasible to get this in top running condition and keep it going for a few years, as well as add some performance boosts? Also, it would be insured as a stock 1983 Volvo 760 sedan, meaning insurance will be cheap as hell.

I would love to own this, but if the reliability issues will be a nightmare on a car like this, I don't think it is worth it.

Thanks for the help!

[playererf]

By the way, I don't mind putting time in to do repairs/work myself, I would actually prefer it.