I'm in pretty much the same boat as you - with current set up - a bone stock 86.5 Turbo and no practical limit to the money spent - but don't want to be stupid about it. I also would like to bump it up to around 300-350 hp. Really it is all stupid as I run it 99.9% of the time like the old man I have become - but toys are toys.
I have not heard that the low end will suffer from going to a 3" exhaust.
The prescription given to me for that amount of power is as follows:
3" cat back
elbow/downpipe
hardpipe ic piping
boost controller.
...they said that should bring me to the verge of the power I want - to continue:
Lexus AFM
550 cc injectors
modified CT26
piggyback ecu - or modified air screw for the AFM
walbro fuel pump
tuning time at a dyno
...they say this can easily exceed the upper end of my expectations. Here is where they cautioned me: picking the modification level of the CT26. Put a huge compressor wheel on it and you will see large lag times and then a huge hit of power. At this point it becomes less streetable. Somewhere in the 52 to 57 trim level seems to be a good middle ground. Nowhere yet is any mention of a new manifold either. The piggyback ecu and a wideband sensor will give most power - although I am trying not to have a modified interior on mine and all of the electronics will cramp that.
I am going to aim for the first batch of mods and see where it gets me, then consider the second batch.
I will also say that with this done you can easily get yourself into more trouble than even the car can handle. I would not go crazy on the engine without considering brake and suspension upgrades.
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