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Considering 5.0s are a dime a dozen. I wouldn't do more than a grand. Body damage both sides. Lord knows how much rust underneath. A 100k+ running 5.0 motor just isn't a selling point to me. Considering you can pick up a motor at a salvage yard for 3 bills. I know it's tuff for young guys to get into the hobby but buying something like this is just asking for trouble unless you have mad mechanical & Body work skills.
All depends on what kind of 5.0 your talking about ? Clean unmolested foxbody mustangs are rare and getting harder to find and worth some good money .......