i think a lot can be done for a 7k budget. My swap from an auto f23 to a 5spd h23a cost me a grand total of $1400. I dare say that if i was looking to boost it, i could make it happen for the remainder of $5600. high mileage h22's are super cheap and if planning to go turbo that would be the way to go. Mileage doesnt matter on a motor that is getting sleeved and built. just make sure to save a good chunk of the money for a good lsd and tuning.
The nessesity for stretching your budget is your ability to do the work yourself. Without that, 7k isnt going to make it very far.