8K US... It can take you far!
Budget $3000 for the car, and find the best, most rust free car you can. This will save you thousands later on, not to mention a bunch of frustration.
That leaves you $5k for engine, suspension, brakes, chassis. I'd suggest doing vented & rear rotor conversion, coilovers, performace struts, urethane bushings, and a 4 point cage as a minimum. I'd say that will leave you about $2500 for engine. Find a junkyard turbo motor/tranny, spend a few bucks on an SDS and maybe a few other engine mods.
This setup will be fast, handle and brake well, and with the SDS you'll have lots of room to grow power wise. A few bolt on mods and you can push 300rwhp pretty easily.