id tear it down. blocks dont usually get beat up, but cracked heads, wiped cam lobes, etc fail all the time. this means the top end, accessories, intakes, etc will sell fast, and for more money. the crank and block are both good, so sell them as a unit, with the pan, balancer, front cover and flywheel. this way anyone building fresh motor from catastrophic failure (cracked block, busted crank) can just buy this lower end and put in better rods, pistons, ETC.
this approach is a bit more work, but no more cash outlay, and should net you in ther 2400-2900 range.
HTH.
-J0N