I have a B5 A4 2.8 AHA. I bought it with the headgasket blown. The owner said he ran it for only a very miniscule time when he saw the steam cloud come out of the tail end. So I took a chance on it. When I dug into it I found the pcv tubes and spark plug wire sheaths melted.. It musta got real hot!

I went for replacing the head gaskets. Simple enough.

Had the heads machined & replaced gaskets and a few other little things while I was in there. Got her back together and then heard a tapping in the bank 1 head and also found that bank 2 cylinder 5 has bad rings. Good compression and leak down results in all but cylinder 5 leaking past rings.

So Im looking to replace this engine.

Question here is what route to go.
I found a complete running engine with 115k miles for $1000
Found another one with 60k miles BUT has a broken timing belt for $500


What would you do? Any opinions or ideas are welcome. Thanks...