How good of a deal is this?

I know where I can get a t-5 from a 86 mustang with a 5.0 for $350. I checked the identification chart and is said if is rated at 265 ft-lbs. I did get the guy who has it to agree to throw in the bellhousing for the $350. He says it shifts fine, but when I asked him if it needed rebuilt he thought I was a little nuts and said "It's a stick not an automatic, you don't have to rebuild it." This makes me think it will need a rebuild before I use it. I'm a while from doing a tranny swap probably, but am ready to start hunting for good deals. Let me know if you guys think it is worth it. Also my engine is a 289 that will get puts out some pretty decent power and will get turned into a 331 eventually, should I go with this or a beefier tranny? Thanks in advance.

You can find rebuildable '90-'93 T5s for that price and they will handle 300ft/lbs...

If I was looking for a factory T5 (good or rebuildable)I wouldn't buy one older than '90.