10% is the rule of thumb, you are just outside of that on cylinder # 3. Anything is rebuildable, just how much are you willing to spend on it. And I remind you, parts are getting harder adn harder for those motors each day. Knowing the outdrive needs work, I'd have to evauluate the cost of repairing the engine adn drive, make sure you look at the transom plate as well. On the motor, you need to check the charging system real close, you can easily drop $600 in parts alone on the charging system.
I was talking to a freind of mine, and he was telling me about a freind of his in NC near Kerr Lake( Va. NC border), that has a Dixie 198 super skier that the floor is gone, and the interior is trashed. The motor/drive/transom plate is supposably good(fresh water use only). He's asking $2500 for the boat motor and trailer. I guessing it to be a late 80's either 5.0 or 5.7 Alpha 1 setup(power steering also). Other than building up motor mounts, it could be a drop in to your V. I'll talk to him this weekend and get more details
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