05 Legacy GT Limited, needs new engine rebuilt, rod knock noise.

[volodyalysak]

As title states, i got 05 Legacy GT Limited, drove it for 2 weeks, and got a rod knock(at least it's what my subie mechanic told me). Well, first off- my budget is 2K. ej255 or ej257 shortblock is around 1650 $ so i have 350 $ left which is not enough to put the engine in. Or i can reuse my block, which i don't know what condition it is inside, but i have never worked with engines before, so don't know what parts i have to get. I'm looking for stock HP levels, maybe stage 1 .

I know it is tight budget, but i think there is a way to make it work, my buddy said, his labor would be 700 $ if i want to rebuild engine, but i want to find parts online, and then make him put it all together.
Thanks

If any of you know cheapper place to get shortblock let me know, i will give my core if it helps to lower price.

[sxcrxy]

i would say keep your block and rebuild it eg piston rods honing new crankshaft and while your at it might aswell put forged pistons for maybe future plans and if you were doing it your self it would be alot cheaper....