I can't make financial decisions for you but if you want to do the work yourself, you can usually get a scrapyard engine for under $1,000. If you can hear it run before you buy it that's a plus. I generally take engines from vehicles that have been hit in the rear etc, never from one that looks clean...reason is that a clean body tells me there probably were other mechanical problems that prompted the owner to scrap it. The "accident victim" may have been running perfectly and would still have been on the road if it hadn't been hit. If you are using a good local shop, you may use up the entire 2K after you factor in labor, fluids etc into the job cost
As a rule, you never recover what you put into a vehicle when selling it unless you got it free, especially since most of what you have done is "normal" repair work except for the expensive tires.
Good luck!!
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