IMO that's a pretty decent motor. I would personally prefer the l31 crate motor but you are getting a good deal on that one. The only worry is its flat tappet so you have to put an oil additive in every oil change or use special oil due to that whole ZDDP change to oil.
Properly rebuilding a motor to be as reliable as the crate motor is going to be pricey, not to mention the waiting on machine work. The labor cost if you dont do it yourself would bring it up even more. I havent priced out anything as far as building for a long time, but if I were you and had the money right now, Id get the crate motor off of your friend.
Do you guys have emissions in Fl? That would be my only other concern.
edit: heres a good article on the capabilities of that crate motor
http://www.carcraft.com/projectbuild...all/index.html