Red_AE92, a 2E powered Corolla is a good car to start out with. It'll be cheap to run & reliable and, as you've quite correctly stated, you can insure it. But as for mods I'd stick to the cosmetic until you're able to upgrade.
The 2E is a good little engine but being small it requires major work to achieve noticeable results. Yes, 140bhp (flywheel) is possible.
When we ran these in Group A Starlets in the early 90's we had about 95 BHP at the wheels.
To do so we were running TRD camshaft, TRD ECU, TRD injectors and, most importantly, TRD pistons and about 14 to 1 compression ratio.
To hold it together you needed a solid steel crank (standard item is hollow), a TRD head gasket and you needed to change the head bolts.
There's about 7 grand worth of bits but it didn't stop there.
To make the package work effectively we needed the close ratio gearkit and the 4.8 final drive ratio. Another 6 grand.
Sadly none of those parts are available any longer so you'd need to custom make them.
So as I've said, I'd suggest you stick to making the car look good, learn to drive, learn about working on the car and move up when you can afford, and insure, it.
Good luck.
Bruce