I was gifted a boat with a 1969 engine. I was certain I could get it started - but even if I could, the power trim and tilt is busted, the wiring is corroded, the lower unit is cracked, and it is 40 years old. A new 90 hp suzuki installed would be about 11k. I just don't have the funds for that, and even if I did, the boat would be taken out maybe twice a week for 4 months- and I can't justify spending that much for a toy.

I would like to keep it in the 4-5k range. I am thinking about buying a sub 1000 two stroke 90's mercury and then paying to have it rebuilt. I figure that would be 2-3k but could be way off. Another option is to buy a remanufactured one from outboard exchange, but again I don't know if that is the best.

Is it a better option to buy a running outboard, of unknown history or hours, that is in the 3-4k range and leave 1k for buffer?

Look online there are some decent deals on new engines from some of the big online sellers and we have a member here who is a Yamaha dealer. How big is this boat ? One thing to keep in mind is that 4 strokes tend to be heavier than 2 strokes. You might want to also wander into a local dealer or 2 and see what they have. Also depending on where you are some places are already banning 2 strokes and trying to force people to modernize and save the planet.

Check here for used and new outboards.
Pretty decent rep from what I have read.

https://obparts.com/

good find, thank you. where did you read reviews on them?

Fb and other boat forums.

Been watching them to price out a 150hp or a powerhead.

i just sent them a message to see if they offer a warranty or any sort of guarantee.

Usually, people sell an outboard for a reason.
Often better to buy boat/ motor combo, keep the OB and sell/ scrap the boat.
Plus, can sea trial it.
Look for someone replacing a bass boat.