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4kstq project

Hey, there's an '86 5kt for sale that has a 
blown head gasket.  It's cheap ($600), and I 
was wondering if this might be a candidate for 
(my) turbo conversion.

What kinds of things would cause a blown head
gasket on one of these?  Would there be any 
other things that would be at risk if this were 
to occur?

I was thinking that I might want to do some 
kind of engine work anyway, in the interest 
of performance.  And this car would be good for 
the wiring harness and peripherals.

Any feedback on this?  My 4ksq is just sitting 
there, looking at me every time I drive my 
Coupe GT in and out of the garage or work 
on it.

The price range is certainly closer to my 
current budget.  BTW, there are running 
examples also available for $1,700.  Would 
the consensus be that a running car is worth 
$1,100 more?  For a project car?