A friend of mines has a 92 jeep cherokee for sale. The only probs powersteering pump and a little front end work for $500. It has a rebuilt engine and tranny. Should I jump on it and buy it.

That sounds like a great deal, but too cheap for a good working example. These Jeeps are not the cheapest to repair, so make sure you get a mechanic to check it out thoroughly, so you have no surprises.
Still, even if you end up spending another $1000 to make it roadworthy, its still a good deal.