Is the Xeon X5650 a cheap cpu for live streaming (twitch)?

So lemme try explain my situation

Current PC Setup:
Case: Zalman z3 plus Black
Power Supply: CORSAIR - 600w Bronze PLUS
Motherboard: Gigabyte z87-HD3
CPU: Intel core i5 - 4460 3.2Ghz
Memory: Geil 8GB 1333mHz
Hard Drive: WD Blue 1TB SATA
GPU: Gtx 780 ti

Now I play csgo at 1024x768 and I find it impossible to stream with veryfast 720p with 1700 bitrate - fps drops maxing cpu usage

So my Idea was to sell my mobo, cpu and cooler with the intention of buying these:

Intel xeon x5650 6 core - 80 euro
ASUS P6T Deluxe - 100 euro
Cooler Master Hyper 212 Evo - 40 euro

However ovb these parts are second hand and we all know the risk as we don't know how much life is left in them.

Any Suggestions whether this idea is worth considering? My budget is tight as fuck, and I thought this was my hope to maybe be able to livestream.

To be sure, the extra cores and threads would help offload the streaming but I don't see why you can't offload it to Quicksync, because your i5 supports it. There's a drop in quality because it's a quick, fast, cheap way of doing it, but that's about it.

In terms of how much life the CPUs have in them - those are Xeons. Those were made with the purpose of running at full load nonstop for 3+ years until Intel discontinued support for them. As soon as Intel stops support, companies that depend on Xeons get rid of them as fast as they can to replace them with new stock.
That's why they're so cheap, but just because they're old doesn't mean they're worn out. I have several 771 Xeons and all of them work flawlessly.

Just bear in mind that you lose newer features on newer motherboards like PCIe Gen3, NVMe support, etc... It shouldn't be a problem, but just so you're aware... you're stepping backwards in terms of hardware. Not that that's a bad thing, I'm just saying.

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I will give quicksync a try :) thank you

Yeah, quicksync is not the best video quality but it is very effective.
If on a tight budget, use that, it is free. ;)

Replacing your i5 with an e3 1230 or i7 would make more sense. The x5650 will feel pretty slow unless you oc it to 3.8GHz plus.

but doesn't it have 6 cores and 12 threads, how do you consider it slow? I have considered that to be another viable option to upgrade to the Xeon 1230

The single threaded performance of the x5650 at 2.66GHz is way lower than your haswell i5. Multithreaded performance won't be that much higher, although the extra cores can mean fewer interrupts.

Haswell also has some enhanced instructions sets. Anything that uses them will be noticeably slower.

An i7 4790k would be the best/simplest upgrade if you could afford it

I've trawled my Geekbench3 scores to create this table to help guide you. Obviously Geekbench3 scores and what you want to do in the real world are not the same thing, but its indicative.

A 12 thread X5650 at stock gets a similar multi-thread score as a Sandybridge i7 at stock. The i5-4570 and i5-3470 should give you some idea where your current CPU sits - note how much higher the single threaded scores are. You can understand how the hyper-threading and clockspeed bumps on Haswell i7's and E3 Xeons would push the multi-threaded scores well above the older i7-2600. If you are able to go that path it would be the simpler/better upgrade for you, rather than a full rebuild using an older architecture.

Dig up an SR2 and do a build with 2 xeons for streaming. If you're gunna go all out, do it in style :3