My 2wd xj until I can convert it to 4wd

[Dead_Raven]

This is my 2001 xj. I'm in the very beginning of building it. But I have a general direction, just a slow grind to get their. Everything is stock as of now. As of now, I am chasing some small issues. Bought it about 3 months ago with 165k miles, no dents, good clear coat. Interior great condition no rips or tears.

 

[Downs]

Looking at how stuffed the tires are in the wheel wells, I would prioritize a suspension and steering overhaul. I'm willing to bet it's never been done in that Jeeps life. If you're wanting to stay mostly stock, go with the Upcountry spec suspension parts. It will gain you about 1 inch over stock (multiple inches from where the Jeep is currently sitting).

 

[MidOH]

Buy a bucket xj with rust and dents on every panel, but is 4wd.

Dime a dozen for beaters.

Swap. Extra points if you swap in a manual trans.

 

[Ethan N]

I agree with the above, get a parts rig and start swapping! Easy money.

I had a 96 XJ that thing was a nice little Jeep.

 

[Wildcat-01]

For what it's worth, I wheeled a RWD Toyota T100 with minor lift, limited slip diff, slightly larger A/T tires and some minor trimming and had a blast with it. I had to yank myself out of a few sticky situations with a come-along winch, but it was fun.
By the time that I became a dad and had to reconsider my vehicle selection, I'd already had a D44 out of a K5 Blazer set aside for a Solid Axle Swap and was saving up to swap in a R151F granny transmission with a geared RF1A t-case.
If I were in your position, I'd start with a limited slip or locking diff, minor lift, and some BFGs and eventually upgrade to a 4x4 transmission and transfer case. That way you'll have traction at both driving wheels and gearing so you can do the majority of what a lightly built 4x4 can do. Plus, when you have SAS money, you already have the transmission and transfer case.