Hi Zett;
With 3-4 thousand to spend at the end of the summer you should be able to find a REBORN outback (00-04 )with new head gaskets,seals ,timing components, and an all over check up on brakes, suspension. I sell them in that condition all the time , prices run 2800-4500 on most of them.
Only as a last resort should you talk to a dealership. Do not buy a car from them.The mechanics in back might be who to talk to not a salesman. They may know of a subaru shop OR one of them might run a sideline mechanic business.
I see Huntington is not to far away and Charleston is sort of nearby. Watch Craigs list. I advertise all my reborn Subi's on C.R. Some one there may be doing the same thing as me.
Do not bat an eye at 200,000 miles on the odometer. Most of the ones I sell are over 200,000 . My personal vehicle is a 2000 5 speed it currently has 298,000 miles , the wife's is a 2001 with 254,000 miles , both run strong and are completely reliable.
Included a photo of a 2003 obw with 225,000 on the odometer. New h.g. timing components ,seals , front and rear brakes, new axle ,new rear wheel bearing , and more . Its selling this Thursday for $4500. I've got a 2000 limited here with 216,000 for $ 3700. These cars are out there, however I do not know about rust issues in your neck of the woods. Here in the NW we have little to no rust out issues. Beware a badly rusted car!