I think you paid a fair price, windshield looks awefully rusty, appears to have about a 2" body lift and SOA lift with stock axles. The rear springs are gonna hate life once you put some miles on the jeep due to axle wrap unless there is a track bar on the rear and the D35 rear is not a great axle. If it has a shift kit, swap out the valve body for an undrilled one, auto trans, specifically the 700r4 do not like shift kits, the constant banging into gear will ruin the trans internal components and case.
One thing to note, a early 90's SBC 350 from trucks, designated as LO5's are fairly torquey motors, but really lack horse power, assuming this was a stock 4.0, the new motor really only gains about 10 HP and about 20 ft-lbs, but the caviat to that is, that motor will perk up with junk yard vortec heads (96-98/99 truck heads) and a cam with duration to matchthe heads. GM sells the entire package, heads, cam, rods, lifters, etc.. I do not have the part number handy but I think they refer to it as the "Hot" motor package.