Pretty tough to beat a low budget big block... they can make 450/500 Hp and that much torque without breaking a sweat. You're going to spend more money to build a small block with that kind of grunt... and end up with a "snottier" (is that really a word?) cam.
You mention budget but didn't say what that is - so maybe knowing that number would help "us" see what you're up against.
You can't cheap out on machine work... there is no "cheap" machine work... and it's critical unless you just want to end up with oil on the street and a bunch of scrap...
If the guy is willing - make the sale conditional on getting an "okay" to go on the block and crank... DON'T GUESS... you need to have a machinist check it out... or you could end up with an expensive boat anchor.
Find a shop you want to work with - and talk to them about the cost of checking the block - and whether or not they'd credit that cost if you go ahead with the boring or whatever it needs. Tell them exactly what you're looking to build... and listen to what they have to say. They may already have a block and or crank that'd done or needs less work - at a great price. Some people take their stuff in - it gets done - and they never come pick it up -- so maybe the shop has a deal laying around. Maybe even a complete motor? Or a long block... never hurts to ask.
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