You could get into the 300 hp range with the stock turbo. There is 2 ways to turn up the boost. The cheap way, and the better way. The cheap way is to shim the wastegate (search) and the better way is to buy a boost controller. The rods, crank, pistons, and mostly everything on the engine are good until at least 500 hp. The only weak point is the head gasket. So you might need to retorque the headgasket if it wasn't already changed out by the previous owner. Which it should have been done by now. If you're not sure, call him back up and ask if he has.
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