-Yea, I had factory 20s with that set up. You only need 1/4" spacers to make them work. Its not the suspension lift that makes them unusable. Its the width of the tires being put on the rims. Use 1/4" spacer and you can fit a 35x12.50
-The truck you posted is a 4" on what looks to be a well worn down 35" tire
-4" suspension lift plus install and alignment will put you in the 2,000+ range easily
-2.5" level kit (130 or bils 220) self installed, plus a 3" body lift (400) with a $600.00 install, and a $70 alignment would put you at 1200.00 the cost of just the 4" lift before install.