Sell every piece of it you can on ebay and craigslist. When you are done selling you will have the cash you need to go out and get a good running car. I disagree with the assertion that you can find a good running turbo for 2-3K. If you want a nice car be prepared to spend 5K and find one with the mods already in place. A 2K MK3 Supra is most likely gonna have some issues way high miles or just be plain ugly. These cars are getting hard to find and the value of parts and demand for this car is increasing. Be cautious when buying any turbo or Supra, people don't usually let them go until there is a good reason why. That reason could end up setting you back a ton of money to repair. You can easily get 2 grand out of any Supra parting it out add your 3k to that and you will have a sweet used car. Check out ebay and what the bottom line is for a good low milage turbo MK3 it surely is not 3K. Would you like to buy my car? I would sell you my non turbo 87 for 3K. The only reason I would do this is because I know of another one for sale near me. Just checked ebay and there are a couple of Automatic Turbos sold up there for 3K but I would certainly bring all my tools with me to check it out before I would buy.
Just surf around in here and try to get an idea of what these guys put into their cars in time and money. Time is money! Oh I see you are in CA. Oh well guess you won't be buying mine then, but seriously, the car sounds too far gone to rebuild unless you really have a lot of time and find a second parts car. You might look for another parts Supra cheap and then combine the two but be prepared to spend a lot of time with it and keep in mind what your time is worth VS just spending the money on a nice car.
Hmmmm, Maybe I need to sell mine and upgrade to that turbo I always wanted..... Hmmmmmm
Here is a 2k MK3 Turbo on ebay.... Do you want to take a chance on this car? .
http://cgi.ebay.com/ebaymotors/1987-...#ht_500wt_1182
"This vehicle DOES NOT have a warranty and I will NOT accept any returns! Car is being sold AS IS!"