Minimum, do a compression check, better still, a leakdown.
A compression check will give you a decent idea of the condition of the engine, but a leakdown test is much more informative as you get a better idea of how (bad ?)the wear is, and a pretty good idea of where the problems are (ie valves, rings, guides, etc).
The tools are cheap, except you'll need a compressor to do the leakdown.
I always look at the
oil..at least pull the dip-stick and run the
oil through my fingers. Look at the bottom of the engine...is it dirty, where, has it just been cleaned?
With a factory car, look for maintanance records...probably won't get much with a cobra...who built the engine...can you talk to them, are they still in business?
That's what I'd start with.