Engine with heat damage

All,

I found an engine that is supposed to have 305 hp from an old cop car. (94) but it has heat damage from a house fire.

I haven't seen the engine, so I don't know how much damage is done.

I have three main questions:

1. is this engine worth taking a risk on?
2. What would be recommended to be changed?
3. How much should I pay for it?

I am thinking this is a high risk engine and probably shouldn't pay much for it. I am not sure if I should rip the engine apart and replace all gaskets or not.

Thanks for your input.
 
Anybody that tells you that a "cop car engine" has 305 hp isn't anyone I'd want to deal with. Ford SSP Mustangs and Police Interceptor LTD's all had bone stock powerplants.