Tim,
$500.00 is a very good price for a professionally rebuilt 261. I paid $225.00 for a junkyard runner that needed to be rebuilt and spent roughly $1,500.00 rebuilding it including machining and parts. I saved some labor cost by completing the assembly and disassembly myslef. I work cheap!!!
You may want to confirm that the engine is a 261 by its casting numbers before commiting to buy it since it could be a 235 instead of a 261. However, $500.00 would still be a good price for a professionally rebuilt 235.
Good Luck!!
