If you want to use it for heat, go with a wood stove, not a fireplace.
I use a wood stove for most of my heating and a heat pump for those milder but still cold nights.
Your 5 grand option sounds like a fireplace/woodstove hybrid. Much better efficiency and lower cost with a real woodstove, open on all sides to the room and not built into a wall.
I have to go along with the wood burning stove like the Big Bear..I wish when I built our home 18 years ago I had done that..I have replaced the back wall multiple times, due to the brides slinging a piece of wood in..With a wood burner you can control the air flow to slow down the burn rate of the wood...Get one with a fan with direction vents and you can heat a big area quickly..Just an idea.