I would tell you to but a 16ve. Take it apart, check the bore make sure.its straight and still in 86 spec. Give it a hone. Notch the pistons for the squiters, boil the pistons and add some new piston rings and attach them to stock de rods .get a sr20ve crank new crank bearings and new bolts, head and main. balance the rotating assembly do a minor port and polish on the head add a thick headgasket to drop the overall compression to 13:1.
now get a 2.5 ssac header, run the 16ve cams.
you can prolly do this for 2000 or so.
u should make about 200whp no prob. down the road sell the 16ve cams and ssac header add in springs and retainers kelford v2s a real header and possibly a intake mani. and go through down 220whp.
stratton.