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First off welcome to the mk3 world. Cali crew!
Definitely potential but quite a bit of work ahead of you. Yeah that rust is definitely an issue. Pull off your front mudflaps and check rust there. In the trunk, pull the plastic side compartment doors off and inspect the wheel well areas for more rust. A lot of oil/grime (like mine was) smoke coming from exhaust side probably grime dripping down on to the hot exhaust manifold. I also vouch for possibly looking for a shell just to keep your options open. Rust repair vs working with less rust and pulling everything out of your current car and transplant into new shell. Under the hood, it looks like everything is there.
Trans. Shift solenoid has recently been talked about on this board. It actually runs and drives which is a plus.
Seems you're in a positive environment to work and people to help you out. Looking forward to progress
 

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Thank you for your input its much appreciated. I will have to put it on the lift again tomorrow and check it out.



I admire the hell out of yours man, that white is actually beautiful. Transplant is definitely an option I'll consider once I know where I am at. Luckily we have a body shop guy who is connected with the owners of the shop I work at. I'll be taking photos to him soon.
Much appreciated brother. My paint is half as clean as most of the other supras on here, I suppose I just got a little lucky when I found it. I used this site to source parts, seems there's quite a few shells in Cali

Car-part.com
I searched 88 supra fender and pulled up a bunch of results
 
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