Ah -- you should be able to build a real decent big block on that budget... you'll just have to keep your eyes and ears open.
One thing I would say up front -- a motor is not just a bunch of random parts... and getting something "cheap" --- if it's not the right part for the build - isn't a bargain. What I'm talking about is the compression ratio of the pistons - taking into account the cam - and the heads... So I would have a big time discussion about the EXACT engine build you want with your builder -- and then make a list of exactly what parts (heads etc) you need to find. Then set about getting your best deal on those exact parts.... rather than gathering a bunch of parts - and then trying to make something out of them.
Cam is critical... the lift - and duration - will set up what static compression you're going to need out of the piston/head chamber... so get all those numbers worked out before you start shopping. Push rods will need to be sourced after all the machine work is done - because their proper length is critical and you won't know what that is until you've done the machine work - picked head gaskets etc...
WEIGHT is the number one reason that people stay away from BBC's... they are harder to deal with - when you plop a couple hundred extra pounds on the nose. But lots and lots of people race cars with big blocks... so it's a matter of the proper spring rate and "anti sway bar" (as they're commonly called)... those would most likely have to be changed when and if you go to the lighter LSx motor - as you'd be dropping a couple hundred pounds off the suspension - but those are not expensive parts to begin with.
Just the little bit that I know -- Auto X is one set up for suspension etc - Drag racing is another... and street is street... To be competitive - you're talking a lot more than just motor. We're talking tires - gearing - roll centers - shock valving - weight distribution... That's the beauty of PT style builds - in my opinion - they do it all pretty well... and they're FUN to drive. But having drag raced.... we're talking a completely different set of rear gears - and trying to hook it up (weight transfer) etc.... So if I was on a budget - I'd figure what I'm REALLY wanting to get out of the car and go for that...
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