Fourth gen Camaros ('93-'02, split by the '98 refresh) look like total and utter ass. All plastic bathtub, no styling whatsoever, worse interior than 3rd gens.
Fourth gens, particularly the '93-'97 cars, with their salad shooter wheels, etc., look like crap by comparison to crisp, steel-bodied lines of the thirdgens. The profile of the fourth gen has no style at all, unlike the wheel-well flares of the thirdgens and soft contours of the B-pillar, the nose is very stubby for a pony car which traditionally should have a long nose and a short decklid, and half of the engine is under the windshield, making them nightmares to work on. The opti-spark is a known common problem on early 4th gens. Not to mention, 4th gen body panels are made almost entirely out of plastic, except the rear quarter panels. Fourth gens have a styleless, cheap look to them on the outside, even if they are faster. Step inside, and it's gaudy bulky GM plastic, in true GM fashion. Thirdgens may have a cheap interior too, but it wasn't gaudy and bulky--it was simple and neat.
Sorry, but IMO, speed doesn't make up for the fact it's a styleless, disproportionate bathtub going down the road. Beauty is in the eye of the beholder, surely, but there are pros and cons to each car or body style. Many an enthusiast wouldn't take a 4th gen over a 3rd gen, as evidenced by a thirdgen that sold at Barrett Jackson this year for $59k, and the numerous other low-mileage originals that go for $20k+ nowadays.
Also, OP, why are you hung on an '86? It was the sole year that had a big ugly hump on the rear windshield for the third brakelight, and '86 cars for some unknown reason were castrated compared to other years.
Also the OP can forget about finding first gen Camaros for $2k. Rotted shells with no engine, transmission, and holes in the trunk/floor/framerails cost a lot more than that. Muscle cars are way, way, way out of the OP's price range. For that matter, so is a '97 SS/Z28, or any really clean '86. Also Sankersizzle, if someone can't get better than a 14.9 in an LT1, they have no idea what they are doing. Many LT1s run around 14.0, or high 13s bone stock. And an LT1 car is going to be more expensive to fix/repair/diagnose than an older, traditional smallblock Chevy car with plenty of room in the engine bay to work. Optispark alone costs around $600 when it goes (not if). If anything the OP would be better off with the older car because they are old enough to have surely needed literally everything by now no matter how long the owner wanted to put it off, whereas there are a lot of early 4th gens limping around town on their last legs, in need of virtually everything.
Honestly OP, for $2k, I would just forget about any Camaro/fun car and just get a dead-reliable Japanese car.