That is EXACTLY what i have done. i have calculated the cost to be around 1600 bucks for a full on rebuild while still skimming on parts that don't usually break, so ill be good. once you have porting work done, that drives up the cost and getting it put together by someone drives up the cost.
so in answer to your question, go ahead and save up money to buy a nice t2 keg that is freshly rebuilt. acquire the parts needed, and once that engine of yours pops, throw this new one in.