Hah. I'd bet we both work in the same progressive utopian city. I got a Draco and installed a Shockwave brace on a folder for exactly the same reasons you are thinking about.
It is far-and-away my favorite gun. I really love that little guy. It is quite a bit heavier than a comparable AR pistol would be, especially with extra mags. It's also more durable and way cooler looking.
Anyway, to answer your questions
Budget is 800US
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That will be tough if you want a brace and a good mount for your red dot. Especially if you order the gun online and have to pay shipping, transfer, and our lovely WA "use" tax.
You'll probably need to keep the gun pretty stock and maybe skip a folding mechanism.
What should I avoid? is Draco as bad as I have been reading?
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I don't know what you're reading. I have a PAP and a Draco. The PAP looks nicer and feels more solid, but they have both been 100% on reliability. The Draco has a slightly longer barrel (which I like) and you can use more standard parts with it (I love the Magpul furniture). I do like the iron sights and the top cover on the PAP better.
Are any unique circumstances with mounting a red dot on an AK pistol? ( I already have an aimpoint)
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A lot of people mount them on gas tube mounts, which puts it pretty far forward, but that's not necessarily a bad thing. Gas tube mounts are pretty easy to install, usually very solid, but kinda pricey in my opinion. They also get super hot.
You can get mounts that replace the rear sight leaf. I like that style, but some don't.
There are also top-cover replacements. Some are good quality, but cost a lot. Some cost less and are pretty much garbage.
The top cover on a PAP is a little more solid due to the hinge and you can mount a red dot there with more stability, if you are willing to drill and tap a couple holes. A lower 1/3 co-witnesses is usually best you can do (not a big deal) and cheaper mounts won't even get you that.
How difficult is it to mount a shock wave brace on an AK pistol?
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I would recommend a drill press, some good taps (with plenty of cutting oil), and a lot of patience if you are planning on doing the work yourself on a Draco. The steel on the rear trunion is insanely hard. Seriously, it would be really easy to break a tap off in there.
I started trying to drill with a hand drill and quickly realized my folly. My cheap drill press made short work of it though.
I don't know about other pistols, but I assume it's similar. The Yugo PAPs need a shim if you want the brace to line up in a straight line with the rest of the gun. Once the rear trunion is drilled and tapped, the rest is cake. There are ways to mount stuff without drilling the trunion, but I've never tried them as they look flimsy to my eye.