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Originally Posted by Sublime865
I'm looking to get into a summer project
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You mean long-term project
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Originally Posted by Sublime865
What models came with RWD (I know GTS, but SR5?)?
What model years are the best?
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1984-1987 - Corolla SR5, 1.6 SOHC 4A-C, rear drums, auto or 5-spd
1985-1987 - Corolla GT-S, 1.6L DOHC 4A-GE, rear disc, 5-spd only
both available as coupe or hatchback
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Originally Posted by Sublime865
I want to get an AE86 with a good engine, what engine am I looking for?
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Obvious signs that it has been maintained. Good belts, oil changes, coolant flushed, service records, original wiring, new plugs, cap, rotor, plug wires, no leaks, good exhaust. If you've poked around on some Audi's or other cars, you should have an idea on what a well maintained engine looks like (beneath the plastic covers

)
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Originally Posted by Sublime865
How can I tell if it has the TRD LSD, without saying "hey this car I want to buy is worth a lot more to me than I'm paying you sucker"?
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These cars did not come from the factory with a TRD LSD. They were optioned with a LSD, but you can't be certain if the LSD is still in a car that has been modified. Ask the seller. If they know what they have, they'll tell you (or be an asshole). If the seller is clueless, look on the rear pumpkin for a sticker that reads "LSD Oil Only," and you should have a rear end with a factory LSD in it.
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Originally Posted by Sublime865
Also any other features I should look for in a car that will be for a project.
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Use and abuse. replaced or missing parts. if it runs. if it has the original motor. dents, rust.
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Originally Posted by Sublime865
What am I looking at for cost, whats a good 1986 GTS with low miles on the clock and no rust going for?
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if you can find someone that hasn't been hassled for their GTS already, maybe $1000 if your lucky. Think $1500-$5000+ if you want a clean car the previous owner has taken care of and modified intelligently
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Originally Posted by Sublime865
Where would the best place be to find such a beast?
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www.club4ag.com for sale threads. ebay. craigslist. local junkyards. police impounds/auctions.
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Originally Posted by Sublime865
What kind of costs am I looking at to mod it?
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a good suspension set up, $500-$1500
motor, rebuild ~$200 or less in parts, plus labor and machine work
performance build, as deep as you wanna
tires and wheels, look for low offset 13-15" wheels, wide, 4x114.3 bolt pattern. 16" can fit too, if you wanna
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Originally Posted by Sublime865
I'm also wondering where I can remove weight without taking out comfort, i.e. the carpeting STAYS! lol But I am okay with lighter seats, trunk lining, etc.
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Seats are the easiest. There isn't much to the trunk of coupes, hatches have more. I dunno about backseats as my car didn't come with any (chalk it up to the previous owner being a dumbshit)
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Originally Posted by Sublime865
What is a reasonable expectation for power output?
It is my understanding that they topped out about 110-120HP,
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on a good day with a freshly rebuilt engine, yeah, 110-120HP sounds right. again,
www.club4ag.com will help answer many, many questions.
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Originally Posted by Sublime865
Basically I want something easy to do as I work 45 hours a week, but I have a moderate cash flow to put into it, I could swing maybe $500/mo on it. I know its not much, but its something to do this summer, and I can do the major work on it next winter when cash flow ramps up. The Audi is expensive to keep driving, let alone modify, so I need a backup car and something cheap to work on
Thanks for craming my brain full in advance 
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Keep the Audi for DD duty and you'll have a better time with your 86. These cars are hard to find, difficult to keep nice once something important breaks, and can easily turn into a bigger project than you expected. SR5->GTS conversions are common, but imo, not worth doing yourself unless you want to spend all your time tracking down the necessary parts.
My suggestion to you, prospective 86 owner, is to do a lot of homework. Read all the forums you can find, ask questions when you don't get it, and search for yourself what you want to know.
THEN, armed with some good knowledge, look for the car you want. Be prepared to travel and spend more than you originally planned. I jumped to early onto my 86 and spent the first 3 years after I bought it with it parked in a field wondering how I was going to get it running.
Plan out what you want to do to the car, and budget it. My opinion here is:
A) get the car in good running order. This means basic maintenance, good windshield, exhaust, brakes, and tires. Make sure the car runs and drives fine BEFORE you modify it. If things need to be replaced, look into OEM and aftermarket options. Some stock pieces are easier replace with aftermarket things.
B) drive the car. get used to how it feels, reacts, and communicates to you. learn what it will do and won't do. i suggest going to the race track as much as possible for this because it is safer and cheaper in the long run.
C) suspension, LSD, tires. get a good suspension, your preference and wallet should decide what you think is good and not anyone else, and a limited slip. Or weld the rear end if your cheap and plan on drifting more than grip racing. And good tires. Nothing will help the car expand it's limits like high grip tires. You're more likely to run out of skill before the car exceeds its abilities if you get good tires.
D) power options. Save it for later because by following parts ABC, you'll be surprise at what 110HP can do