The bike has a modest top end but has a ton down low and in the midrange. With a flywheel weight, it rides like a 4-stroke.
In 86, the bike was lightyears ahead of anything offered by any other manufacturer so it was a power year in that aspect. It didn't have the fastest motor, but the suspension/geometry is closer to what you would find on a modern bike. 86 was the last year for the drum rear brake. 87 got a removable clutch cover as well, which makes maintenance much easier. 88 got the inverted cartridge fork which pretty much puts in line with a modern bike. The suspension on the 86/87 bikes works great in a lot of situations and can soak up most jumps you throw at it, however, it does have a few shortcomings in some situations.
The power valves are difficult to setup properly and the bike will lack severely in the midrange and top end if you don't get them working right.
I have always heard 85-87 were the power years for the CR500.