Don't buy it wait for a Gen II SR or a Gen II.5. They have a lot more to offer. I bought my 1998 for $3000. You can find SR's for $1500 and in good shape. Bigger brakes, motor, factory locker just to name a few things.
You can upgrade, but it take time and money. Read my signature (Gen I), it started life as a RS.
I do not really have time to wait for any vehicle other then what might be out there for sale up to 2 grand.
Here is my situation. I have a job that is about 3 blocks from my house, that has given us the luxury of being a 1 car family for quite some time now.
The bad news is my employer is going through a divorce and after a dangerous(I have come close to going to jail after she attacked me) year and 3 months of working on his property while his nut job fraud of a wife had sole access to the house, we had access to the shop on the same property, the trial has finally came and gone as of last Thursday. We are just waiting for the ruling to see what happens.
What could happen is that the judge will force sale of the house and my employer would be forced to fold up and go out of business. He would be unable to afford moving his shop.
This means I need to have a daily driver of my own ready to go when this occurs so I can go out and find another job as my Xoskel business is not doing enough sales to support me full time just yet.
My criteria for this was something reliable, 6 cylinder, not too bad on gas, able to do some off road duty now and then, and be running and ready to drive so I can get right out there into the job market.
As a side benefit any vehicle I wind up with will probably have offroad expedition products developed on it so I could possibly make a profit and write the truck of as a business expense. Not sure if the Gen 1 Mitsubishi is a worthwhile market but I do like that vehicle for the money.
The vehicles that I have been looking at so far are
Nissan Pathfinders
http://phoenix.craigslist.org/nph/cto/1422364190.html
Isuzu Rodeos
http://phoenix.craigslist.org/evl/cto/1435849807.html
and Jeep Cherokees.
I have been looking at some other 4x4's as well but few appeal to me.