Spent about $800 in parts for my 261, ~$200 for the engine and another $800 for machine work. Mine required a little more time and effort to get it right plus a cylinder sleeve on #5, so I might have been able to do it for less if luckier. I took it to the machinist fully disassembled and that's the way it came back. They estimated about $400 to assemble it to the point of a long block. Don't think $2000 is really out of the question especially if it is someone reputable that can work with those old bearings. Good luck.
