I like how the OP posted no actual dollar amount he wanted to spend; good way to accomplish finding the right car :goodjob:
As far us cars under $5k:
-2g eclipse/talon FWD, very fun car, pretty easy to work on, loads of potential, cheap.
-SN95 mustang (cobra or GT), LOTS of fun to drive, loads of potential, etc.
-92-95 civic hatchback, cheap, easy to work on, very go-kart feeling... need I say more?
-BMW E30, another go kart like car, surprisingly not hard/expensive to work on.
I've had one of every car I mentioned, so it's first hand experience... I wouldn't recommend a car I've never had.