Well, it all depends on what you want from it and what you started with. $10k is quite easy to spend for a decent one with nice paint, stereo, built suspension, upgraded brakes, engine, transmission, interior, etc. Mine was total crap by the time I started rebuilding it, and I easily have $10-12k in it if you add up all the little bits ad pieces. Then again, I wanted a nice all-rounder with good handling, A/C, cruise control, stereo, perfect body work and mile deep paint, etc. Now, if all you want to do is go fast in a straight line, and your idea of a paint job includes going to Wal Mart and buying a case of flat black spray paint, you can get away much cheaper. You will need a real rear axle if you plan on beating on it hard or running slicks, so count that in the price of admission. The rear axle would be anywhere from $600-2500 depending on you ability to shop, and what you want. The engine can be really cheap to do. A 400hp SBC can probably be built for under $2500 including all new internals and quality machine work. Less if you get a good core to start with. Plus, you can add another 150hp of nitrous to it if you go with forged pistons. The transmission will run you $350-2000, again depending on what you want.
For the cheapest possible domestic way to go fast, get a 1987-1993 Mustang 5.0 with a 5 speed. A good rear end to start with, the transmission is not bad, and oodles of parts available new and used. Plus, the 1987-92 models also came factory with forged pistons and the short block can take amazing amounts of abuse. It has a factory roller cam, and used upgrade cams are available cheap. The bad? Well, it is made from very thin metal and the chassis tends to develop stress cracks (under the driver's seat especially) and you can rip the torque boxes out under severe abuse. Subframe connectors are a must, and other reinforcements are also advisable if you plan on racing it.
Overall, domestic is faster for less money for drag racing when compared to front drive imports. A 12 second G body can be built substantially cheaper than a 12 second Civic. I have known people with absurd amounts of cash into B18's, LS/VTEC's and CR-VTEC's that only ran that number. Now, you could do a best of both worlds car, like a LSX swap into a last gen RX-7, Miata, or a S13 or S14 240sx. This would give you domestic power cheapness in a great handling RWD chassis. Plus, the aluminum LSX engines don't weigh much more than a 13b, and probably not much more than a KA24DE either. Then again, the LSX is cheap only if you have the ability to do it yourself.
