Don't know if your 200HP goal will be met then. That's a decent increase of 50 HP (drivetrain loss and all taken into consideration).
In any case, first thing's first; make sure the engine is in perfect running condition. Right now that's the best thing for it if you want to meet your goals down the road. Modifying a worn engine will do more harm to it and will make reaching your horsepower/torque goals that much harder.
Start off with the basics; fluids, plugs/wires, run SeaFoam/water through the intake to get rid of carbon deposits, fix anything that's broken (vacuum hoses, gaskets, bearings, bushings), etc.
Obtaining your goal can happen, but it's more effective to save for better parts.