You need to think about how much time, effort, space and money you want to dedicate to the project. If you tear the thing down with the intent of rebuilding it and fixing the problems, then you're on the hook for a big project and the thing is going to be sitting in the garage for a while.
I have seen a lot of Jeeps that were bought as projects that were never completed. If you read a few build threads here, you'll see some fine looking Jeeps, but many of them are projects that play out over months and years.
I think many people pick up a $1000 Jeep with the intent of doing a project, but start getting sucked deeper and deeper into it as time goes on. As they strip off the layers they find more and more problems. That of course equates to more time and money, and more time of the Jeep sitting there, unuseable. One semi-common theme is the photo of a person sitting on a rolling frame, holding a steering wheel.
So it's a good idea to consider these possibilities up front and establish the scope of what you're willing to take on. I don't mean to be negative; just realistic