Looks like a clean car. As far as the "cracking" of the paint at the rear door, that's normal as this car rusts in the strange way - in to out...but yes, spreading can be postponed for years. 96's are great, especially when you have those tornado wheels on them (matter of preference I guess), and also, the 4.0 is a good engine overall with only certain things like minor seal problems and valves that get lots of carbon on them and act up every few years.
Also, '96 means a first year OBDII, so you can get a handy code scanner for about $50 and find out what's going on in your engine if your "service engine" light ever comes on.
The car is definitely for someone who doesn't let small things and repairs get to them. The overall experience is really rare to compare to other cars to - truly unique. Good luck!
P.S. As far as the secondary $500 shitbox tercel...sounds like a good idea I think (for us older guys), but insurance might still be up there for you
