258 vs 4 banger

[Kirbot]

My advice is that if you are going through the entire process of a frame up, YJ tub etc then go and look for a fuel injected 4.0 and use it. The engine may not get more gas mileage than a v8 but it is one of the greatest wheeling engines ever developed, it holds 80 percent of the torque at idle so it delivers the performance where a off road machine needs it, Any way you go it looks like the grand you have for the engine is just a start anyway, a rebuild will use that up quick and ask for more unless you skip this and that.
Good luck with whatever you do, and hope to see pics of the build posted

Not a bad idea

I looked on craigslist and there seems to be a lot of 4 liter cherokees around for $500 or $600.
1998 jeep cherokee
This one seems pretty good, alot of miles on it, but from what I read many of them make it well over 200,000.
And if I use the engine, and sell all the other stuff, it probably wouldn't be the most expensive option either.

Hmm, I might just do that...