Where do you live? I know a great builder in New England. Can build you a better than stock 205 for much less than buying the other car. Be very careful with ebay on these. Depending on how much damage was done to the motor (did you drop the oil pan to look at it?) a rebuild can be pretty cheap.
If you are in New England, (I live on the MA/NH border, the engine builder is in RI) I have a garage, motor lift, motor stand etc. We could pull & replace the motor here. I've done it about seven times now so I can do it in my sleep.
At any rate, I agree with most others. If the rest of your car is good, do an overbuilt 205.
I see spun rod bearings in the 205's constantly. To correct the problems:
Stock rods are fine.
Consider forged pistons (I like Wiseco but everyone has their favorite)Stock pistons are also ok on a budget.
Consider a forged crank. If you can only do one forged option, I would do the crank.
Bearings, I like Clevite, a lot of people though like the ACL race.
Your heads will hopefully just have to be gone over & cleaned.
Lastly I would put the STI oil pan on there. They are $150 new on ebay. Allows for racing headers later on should you want, but also more oil which is always a good thing.
Make sure the builder balances EVERYTHING well. In these engines, balance is critical.
Have a qualified builder do that, don't drive like a moron, & you stand little chance of spinning another rod bearing. I see that all the time too.
Quickest solution is just to get another long block, but then you have an rod bearing spinning setup you had before.
Also, realize that if you do forged pistons you will hear a knock when you start the car till the pistons heat up. Totally normal & will go away with temperature. If you want to look for rod knock in your car, in neutral push the pedal to between 2500-3500 rpm & listen. If you have actual rod knock, thats the best area to hear it.
Of course you could also just drop the oil pan & if you have knock you'll see it plain as day.